Getting a mortgage is one the biggest investments that you are going to make in your life. Although most home buyers don’t shop much when considering the option of mortgage lending company. Following are some common mistakes that most of the people make when applying for mortgage.

Shop for a suitable lender

It is very important to choose your mortgage lender wisely. One wrong choice can put in stressful home buying experience. Therefore shop around, ask your friends and relatives and last but not the least seek help and consultation of an experienced real estate agent.

Prices

Do not fall for the trap of ‘cheap rates’ or ‘unimaginable interest rate’. Find out how long the advertised rate is guaranteed for.  Make sure there is enough time to close your loan. Some companies will give you ‘guarantee’ of cheap rates but will try changing the rates prior to closing. Seek the consultation of your agent to figure out the situation.

Choice of Mortgage Program

Today different lenders offer a variety of mortgage lending programs, some of them may offer a low interest rate but it’s not necessary that they are suitable for your situation. Therefore it is important to make you lender understand the type of program you are interested in.

Avoid making wrong choices

Deciding when to lock in to a mortgage rate can be difficult.  If you wait too long you may end up choosing a mortgage plan with very high interest rate. Therefore it is important to stay in touch with market conditions and present rates. You can check your daily newspaper about the current conditions and rates and lock-in the deal at suitable time.

Close at the end of the month

One way to lower your closing cash requirement is to close in the latter part of the month.  This will lower the amount of prepaid interest that you must pay.

This is not to say that a loan lock should be disregarded just to lower the cash to close.  Many factors play into when the loan closes, not the least of which is the closing date in your sale contract.

Before choosing your mortgage plan keep all these points in your mind and if you need further assistance contact Avon Financial today. We will be delighted to help you.

Contact us: info@avonfinancial.com
Ph:905-216-5563

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