Buying a property is exciting but can also be overwhelming if you are unprepared. Understanding your mortgage is a must so that you don’t get confused with complicated paperwork and make the wrong choices. For most people, a mortgage is the most significant debt they will carry, so you need to be well informed and educated.
If you want to purchase your dream home, the following are common mistakes you need to avoid:
Failing to get a pre-approval
Shopping for a home without a pre-approval is a big mistake that will result in wasted time and effort. Putting an offer on a home without getting pre-approved is even worse. A pre-approval will tell you up to what amount you can spend on a home, so you can look at the right properties and not fall in love with a home you cannot afford. You cannot guess this information as you may not qualify for the amount you anticipated due to your income or poor credit scores.
Not disclosing exactly how you earn your income
When you apply for a mortgage, the lender will examine your finances to determine whether you are a good candidate for a loan. They will check your personal information and go through your salary, credit history, assets, and employment to evaluate risk factors or the possibility of you missing a payment. If you’re employed, you will have to provide the lender with an employment letter and a pay stub, or you may have to submit a two-year history. You will have to fully explain your income and will have to provide all of the necessary documents.
Not disclosing your credit history
When it comes to borrowing money, your credit history will play a significant role as this will help the lender determine your creditworthiness. Those with good credit will receive favorable rates and terms on their mortgage, whereas a low score will compromise these aspects. Regardless of your credit score or history, you need to be honest about this information so that the lender considers your mortgage request.
Providing false information
Lenders have audits they must adhere to with legal authorities, so you need to disclose precisely how your down payment is being accumulated. Failure to submit details regarding how your money has been saved or borrowed can lower the mortgage amount you can be accepted for. This information will also affect the type of financing you can obtain.
Reaching out to a reputable mortgage broker is a wise decision as their knowledge and experience will help you purchase your dream home. They will guide you through the process and provide detailed information to make informed decisions.
Here at Grover Mortgage Group, we help our clients with every aspect of their mortgage and will make sure the process is smooth and stress-free. We will provide you with the best mortgage solutions, so if you are in Oakville, contact us today for more information!
