Mistakes People Make When Applying for a Mortgage
One of the most widely used financial tools that helps people purchase a home or office or pay for repairs and home renovations, is a mortgage. There are various types of mortgages and knowing which one to pick can be quite a challenge. This is where a mortgage broker steps in to help you make sense of your choices and select a product that’s best for you.
However, if you’re hiring a broker, you need to ensure you find someone that understands your requirements and works for your benefit. In the same manner, you need to look for a mortgage product that fits with your budget and matches your requirements.
Unfortunately, people are often confused about how to choose a mortgage broker and product and end up making some expensive errors. To help you avoid such a situation, Tony Hundal at the Axis Mortgage Corp has compiled a list of common mortgage-related mistakes people make.
1. Selecting a random mortgage broker. Picking out a mortgage broker at random from a well-written advertisement is not the way to go. Remember, the mortgage broker who did that probably can’t get clients based on their merit, so they are advertising for their business.
Don’t get me wrong, as that may not always be the case. However, you need to look beyond the advertisement for more information on the mortgage broker like the number of years they have been working in the industry before you decide to hire their services.
2. Not looking up reviews and testimonials. Before buying electronics, everyone usually goes online and compares different brands before choosing the most suitable item. Similarly, mortgage brokers should also be looked up. Mortgage brokers make themselves easy to find because they want to attract clients. Unfortunately, most people don’t read about the backgrounds of their brokers. You must Google the mortgage broker and read the testimonials about their work. That is the easiest way to know your broker because clients do not write rave reviews if they aren’t pleased with the work.
3. Avoid seeking clarity over their doubts. People are afraid to ask questions for fear of appearing incompetent. They prefer to remain ignorant of important details rather than appear to be less than what they portray themselves to be. As a result, they are unaware of the changes in mortgage rules and do not benefit from them. You need to realize that you have hired the mortgage broker and it is their professional duty to answer your questions and alleviate your doubts. So feel free to ask the questions.
4. Picking the first mortgage product they come across. A mortgage is a huge decision because it isn’t a short-term option. People forget this little detail when they shop for a mortgage product and sometimes even pick the first option they come across. You need to shop for the right product by checking the features of different mortgage products and making a decision based on what would suit you best.
5. Chasing the best rate. Selecting a mortgage solely because it has the best rate is not advisable. Remember, a mortgage cannot be compared like the price tags on grocery items. There are multiple factors to consider before signing up for a mortgage. By consulting a mortgage broker, you will be able to distinguish which product is best for you.
As the best commercial and residential mortgage professional in Surrey, BC, Tony Hundal at the Axis Mortgage Corp, offers mortgage services for commercial, private and residential purposes which include services like mortgage pre-approvals, debt consolidation, and several other mortgage services. I have more than fifteen years of experience working with mortgages along with twenty-five years in various banking institutions to help you choose the right mortage product for your needs.