First-time homebuyer? Not sure what you’re doing? It’s important to not make rookie mortgage mistakes, especially your first time out of the gate. After speaking with some qualified mortgage brokers Melbourne, we’ve compiled a list of the top rookie mortgage mistakes people make and how to avoid them when purchasing your first home.
Common rookie mortgage mistake #1 : Finding your home first!
We all know finding your home is the most excited part of the process! However, the most important piece of the puzzle, as any qualified mortgage broker will tell you, is the financial (and far less fun) aspect. Without a pre-approval or approval, many lenders won’t even consider your bid. It can be incredibly stressful to fall in love with a home and have it slip through your fingers when you’re not approved for a loan or for as much of a loan as you’d need. Save yourself the heartbreak and speak with your mortgage broker first to gain pre-approval, then start looking for homes.
Common rookie mortgage mistake #2 : Not factoring in other potential costs!
There are a lot of mortgage calculators out there that allow you to plug in your income and calculate an estimated mortgage payment. Don’t be fooled! There is a lot more to a mortgage than just the simple payment. Discuss all potential costs with your mortgage broker and they will tell you there are many other, sometimes hidden, fees. Homeowner’s insurance, property taxes, utility payments… all of these things factor into your monthly expense and may significantly increase your cost. Before deciding on a price range, talk to a mortgage broker and figure out what you can afford. Click here for more!!
Common rookie mortgage mistake #3 – Missing documentation!
When applying for a mortgage, make sure to have all documentation ready to go! Start gathering all documentation between 3 and 6 months before applying to make sure you have time to get all necessary information. Good documents to have on hand are recent tax returns and W-2s (past few years), pay stubs, information on all current credit cards and loans as well as bank statements. Try to keep all information current, no more than 120 days old.
Common rookie mortgage Mistake #4 – Making another large purchase before applying!
Just having a pre-approval doesn’t guarantee a mortgage. Something mortgage brokers frequently say is that they see people apply for another large purchase after the pre-approval, thinking that means it is a sure thing. Financing a large purchase can affect your credit score enough to cost you a pre-approval. Once you’re pre-approved, make no major changes.
Common rookie mortgage mistake #5 – Not relying on the experts!
It is so important to work with qualified mortgage brokers, especially as a first-time homebuyer! All of the rookie mortgage mistakes can be avoided with professional assistance. They have been there, done that more and will help you avoid any potential pitfalls. Find a skilled, licensed mortgage broker and work with them closely. See more here: http://www.bestlocationhome.com/5-tips-finding-best-mortgage-lenders/
Please visit www.mortgagebroker247.com.au for more information!