Avoid These 4 Costly Mortgage Mistakes
Buying your dream home is super exciting! But in the rush to make it happen, it’s easy to make mistakes that could cost you a lot of money. Here are four big mortgage mistakes people make when getting a loan, in no particular order.
Mortgage Mistake #1—Ignoring Different Loan Types
Not all mortgage loans are the same. Besides the common 30-year fixed-rate mortgage, there are adjustable-rate mortgages (ARMs), FHA loans, VA loans, and USDA loans, each with its own pros and cons. Ignoring these options means you might miss out on a better loan for your situation.
This is another reason to shop around. Different lenders might have access to different types of loans. Talk to them to find out which one is best for you.
Mortgage Mistake #2—Not Thinking About Future Financial Plans
When choosing a mortgage, think about your long-term plans. Will you stay in the home for a long time, or might you move in less than 10 years? This can affect which type of mortgage is best for you. Also, consider how your income might change and whether you want to pay off the mortgage faster.
Make sure your mortgage fits your future financial goals to make the best decision.
Mortgage Mistake #3—Not Shopping Around for Mortgage Offers
It’s easy to just go with the first mortgage offer you get. But that’s a mistake. A study by LendingTree showed that most people (54%) only get one offer. Jacob Channel, a senior economist at LendingTree, says, “Different lenders can offer different rates to the same person. The first rate you get may not be the best one.”
Think of it like shopping for anything else. You wouldn’t buy the first item you see without checking other stores, right? The same goes for mortgages. Different lenders have different rates, and even a small difference can save you a lot of money over time. In fact, the study found that 45% of people who shopped around ended up with a better deal. So, it really pays to compare!
Mortgage Mistake #4—Relying Only on Recommendations
It’s good to trust your real estate agent’s recommendations. They build relationships with lenders to help their clients. But if they only recommend one lender, it might limit your options. Different lenders have different tools and options for getting a mortgage.
You should aim to get at least two different mortgage offers to compare. This helps you find the best rates and terms.
Conclusion
Getting a mortgage is a big step in buying a home. Avoiding these common mistakes can save you time, money, and stress. Remember, it all starts with shopping around! This way, you’ll get the best mortgage deal possible.
If you’re seeking help, feel free to consult our recommended mortgage professionals: Central Bank, Brooke Gagliardi, and AMC Mortgage, Gordon Chandler. These two are always prepared to provide expert guidance on navigating the mortgage landscape. As always, OKCHomeSellers at McGraw Realtors stands ready to help. Just contact us!
Luxury Specialist at McGraw Realtors
With a diverse background, including a career as an Air Force fighter pilot and entrepreneurship, Bill transitioned to real estate in 1995. Co-founding Paradigm Realty with his wife, Charlene, he quickly rose to prominence in Oklahoma City’s luxury real estate scene. Now, as one of the top agents with annual sales surpassing $20 million, Bill’s dedication to exceptional service remains unparalleled. With a legacy spanning over two decades in the industry, Bill’s expertise and commitment make him a trusted name in luxury real estate.