The 4 Most Common Mistakes You Can Make When Getting A Home Loan!

Whether you are buying your first property or have decided to upgrade once more, you need to be extremely careful when making this move. As well as the stress and emotions that can affect your better judgement, it is all too easy to overlook vital details along the way. Even the most experienced movers have been known to fall foul of some fairly novice mistakes. It’s not unusual because moving home is listed as one of the top stress inducing activities there is. It is somewhere between getting married and having children, and that’s a pretty tight place to be. There is no definitive list of the perfect way to move, but this article highlights a few of the more common pitfalls that are best avoided. Hopefully you can take note and they’ll serve you well in the not too distant future!

Mortgage Matters

For many of us, when we receive the news that our mortgage has been approved, we tick that off the list and move on to the next box. But perhaps we should be a little more selective and look around a little further. At least we have this one to fall back on, but who’s to say a better deal isn’t around the next corner? Try and get at least 3 offers and compare the terms and conditions carefully. Many mortgages have hideous early repayment options that can trap you for years and years. Look at the fixed and flexible rate options and don’t be afraid to ask for some independent financial advice.

Pre-Approved – The Facts

When a lender informs you that you are ‘pre-approved’, don’t treat this the same as a loan offer. Whilst it may be easier to be taken seriously once this has been verified, you are still a few steps away from the actual offer. Quite a few people and couples have placed offers on properties only to find out that the loan request was rejected. Last minute credit checks are often the last hurdle in this complicated activity, and these are usually the reason for rejection.

Watch Your Credit!

Many of us are fortunate enough to get through life without borrowing a red cent, and that is fine until you look for a mortgage. The credit checking procedure will return a low credit rating if you have no loans whatsoever! This has caught out many a ‘wouldbe’ homeowner in the past. Whilst it is nice that you can live without being in the red, it is wise to accrue a few lines of credit even if you never use them. The same is true for people who have dipped into their credit limit a little too deep.

Always Be Honest!

Although it may seem worth almost anything in order to get that mortgage approved, you should always be totally truthful on your application form. Many people have been found out after long after they have moved into their new home. They usually end up homeless and with a nasty penalty to pay. If you go through an independent loan broker, pay attention to the figures and facts on your form before your sign it. They work on a commission basis and have been known to stretch the facts in order to get the mortgage approved.

Good Luck!

People usually get refused mortgages because of their financial and employment status, as long as you are careful with your budget and have a steady line of work, you’ll get a home loan eventually.

The author of this post, Nancy Baker, is a freelance blogger who is currently writing for Abercromby's, a renowned real estate company based in Australia. She is an outdoor person and she enjoys going on camping trips with her family when she gets free. You can also follow her on Twitter @Nancy Baker.

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