When you are getting a mortgage, not knowing the entire process in detail can put you in unforeseen circumstances. No matter this is the first time you are purchasing a house or you are a routined investor, a single wrong move can cost you your precious money and time. There are a few mistakes that people commonly make when they begin the home buying process. Make sure you don’t do the same mistakes that have been listed below:
Not reviewing the mortgage
Review your home loan policy every year. Nowadays, interest rates are lower than ever so review your home loan to check whether it’s market competitive. If you don’t review it frequently, you might miss out on any improved hoke loan feature and might even have to suffer losses.
Fixing a longer loan term
When you are buying a house for the first time, considering a long repayment term is okay since initially, you are on a tight budget. Once you become a bit more stable financially, consider repaying the amount over a short period. Increase the amount to be paid per installment. That will save you a considerable amount.
Not hiring a mortgage broker
Work with a mortgage broker instead of visiting your bank daily. Your mortgage broker would provide you with a variety of lending options and the best solutions. Perhaps the greatest advantage of working with a mortgage broker is that even if you are self-employed or have a bad credit score, your broker might connect you with one of his non-bank lenders who specialises in handling such type of business.
Not taking into consideration the extra costs involved
When it comes to deciding on a mortgage, you have to keep in mind a lot of factors apart from the interest rate. When people choose a lender who offers the loan at the lowest rate they might not get the best services and features. There are extra costs involved, which increase the loan amount you have to repay like establishment fees, legal costs, property taxes, break fees, etc. Basic home loans offer fewer product options. Hence, it’s important to hire a mortgage that would assist you in choosing a suitable loan policy.
Your hired mortgage advisory services Singapore would guide through the process of purchasing a home. He would provide you with a list of the several home loan options and features available to you so that you can make an informed choice that best suits your requirements.