Buying a home is the biggest purchase you will make in your life — it is also the largest monthly expense you will have. Yet, most people will do little preparation, negotiation, or shopping to get the best deal on their mortgage and end up paying much more for their loan. Here are five mortgage mistakes you can make and how to avoid them:
- Believing advertised rates are what you will pay. Lenders who advertise rates are often trying to tease customers in. All rate quotes are tied to the individual’s credit scores, financial strength, down payment, property type, etc. Advertised rates are usually based on best case scenario and don’t take into account the specifics of the actual transaction. We urge borrowers to compare rates and closing costs based on your actual situation.
- Not knowing your lender. Whether you’re working with a Mortgage Banker, Mortgage Broker, Bank, or Credit Union; your lender should be anxious to spend time looking at your individual circumstances and offering a firm proposal to meet your needs. This will allow you to compare all of your options and make a decision on what is best for you. If you don’t feel comfortable with your lender…..find a new lender.
- Not understanding mortgage terms. Understanding your loan may be confusing, but your Wisconsin Mortgage Corporation Loan Officer is there to help you. Not asking questions is a big mistake. Your lender should be prepared to explain any and all terms associated with your mortgage. Don’t be afraid to ask questions. Good lenders welcome the opportunity to help you understand what can be a very complicated process and terminology.
- Waiting for rates to get better. Trying to time the market is a dangerous strategy. Rates are at historically low levels and will rise at some time in the future. Getting a good rate is important. Just as important is not paying too much to get that rate. Slight differences in rate should be balanced against cost, quality of service and a long term relationship.
- Choosing the wrong type of loan. Your individual needs will determine the best mortgage product for you. Your lender will evaluate your financial condition, funds available, how long you intend to stay in your home, etc. This evaluation will identify the best product options specific to your needs. Choosing between fixed rate, adjustable rate, conventional loans or government loans cannot be guess work. Work with a lender that takes the time to evaluate your individual needs.
When you’re ready to begin your home search, contact a Wisconsin Mortgage Corporation Loan Officer!
Tags: buying a home, Home Buying, Housing Market, living in milwaukee, Milwaukee, milwaukee lifestyle, Mortgage, real estate advice, real estate market, shorewest, Shorewest Realtors, Wisconsin, Wisconsin Mortgage Corporation