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31 Common mortgage mistakes smart people avoid

Author: Jessica Bennet
Community Mentor
Ask Jessica
Posted on: 17th Oct, 2005 08:56pm
Obtaining a mortgage loan is not a very easy task. Rather it is a very intricate and time-taking process. Importantly it is a very significant move in your life.

It is often seen that out of the excitement of owning your dream home, you commit mistakes. You also make mistakes because of your ignorance on mortgage as well as because of the complexities involved in the mortgage process. Sometimes these wrong steps taken by you prove out to be very costly. You may have to incur huge losses and even may have to face the negative consequences of foreclosures.

You can make mistakes while taking out a fresh mortgage loan, while opting for a second mortgage loan and while refinancing your original mortgage loan. Take a look at 31 common mortgage mistakes in total.

12 Home-buying mistakes to avoid

Owning a home is a symbol of personal achievement and is very self-satisfying too. But it is not a cakewalk. In fact, your dream of owning a home can turn out to be your financial nightmare because of your wrong steps while making the purchase. Have a look at 12 common home-buying mistakes so as to shield yourself from these slip-ups.

10 Big second mortgage mistakes to stay away from

Once you have taken out a mortgage loan and have acquired some equity in your home, you may become complacent at the time of taking out a second mortgage loan. Have a look at these 10 second mortgage slippages so as to better equip yourself to cash in on your home equity.

9 Refinance Mistakes and how to avoid them

The allurement to enjoy better rate of interest may instigate you to plunge into refinancing. But your imprudence and hasty decision may put you into serious troubles too. Know about 9 common refinance mistakes so as to safeguard yourself while replacing your original loan with a new one with better terms.

If you however have proper knowledge about these common mortgage mistakes that many home buyers often make, it becomes comparatively easy for you to make the right mortgage move.
Posted on: 17th Oct, 2005 08:56 pm
when you go for a mortgage, you're making a big financial decision. and, you need to be smart enough to choose the right offer and know how it can help you financially.

it's not unusual if you can't make the right comparison, if you misjudge terms and conditions, or borrow more than you can afford. with a wide range of options available, it's a hard task to find the one that's best for you.

however, if you're aware of the mistakes many homeowners usually make, you won't take the wrong step. so, whether you're a first time buyer or one who's looking for a refinance or second mortgage, take a look at the common mistakes, which could otherwise cost you a lot of money:
I haven't read the list of the most common mistakes, but I can suggest what i think is the biggest mistake. Over committing yourself.

Regardless of whether or not you are eligible for a particular mortgage, if you don't feel confident that you can meet the payments both now and in the future, then just don't do it!

It is not worth it in the long run.

The best advice I can give is to speak to a good independent Mortgage broker. They can help you with all the questions you have and will find the best mortgage lender for yuor circumstances and should be able to help you decide if the mortgage is suitable for you.

[Link deleted as per forum rules. Thanks.]
Posted on: 17th Oct, 2008 05:45 am
Support fully. An independent broker will be able to give adequate advice.
In addition can get some interesting information at this site

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[URL Deleted as per forum Rules. Thanks]
Posted on: 25th Dec, 2008 06:26 am
Here are some other mistakes people make..

1. I would rather deal with a bank directly because if I use a broker I will probably get a higher rate.
2. If I go to my local bank, they will give me the best deal because I have my checking and savings accounts there.
Posted on: 05th Jan, 2009 04:38 pm
It is surely helpful if one get mortgage from the same bank where they have their checking account because bank knows your credentials and your statement flow of they will better assess your case & thus award you best option for the mortgage with the lower rates.

Go local ....... :wink:
Posted on: 22nd Feb, 2009 05:16 am
manoj, i cannot help but disagree. most banks have completely separate departments working on mortgages in comparison with their banking side. the two most often don't even converse. now back in days of old, what you mentioned had some validity. this is a new (strange) world of mortgage banking and banking in general.

lenders could care less where you do your banking. bankers will certainly try to persuade people to obtain their mortgages in-house, but that's primarily because they want to increase their own wealth, not because they feel they can provide better service as a result.

if there's a little cynicism in that, so be it.
Posted on: 24th Feb, 2009 07:54 am
to add to what george said, you are not even guaranteed to get a better refinance rate from the bank that currently holds your mortgage. they will often treat you no different than a stranger.
Posted on: 28th Feb, 2009 04:31 pm
but eric...a stranger ought to be treated pretty darned well - after all, it's the strangers we need to impress if we want to do landmark business. but of course, some of us treat everyone well. that's the only way business makes sense.
Posted on: 02nd Mar, 2009 07:06 am
more & more banks are becoming atomized about their system ( i wonder sometimes people over there are too) they are loosing this ' personal touch'.

Now so many banks are offering these services because they have understood the importance of the personalized services.i hope mortgage lenders will also look into this aspect.
Posted on: 07th Mar, 2009 01:01 am
guest, i have no idea what you mean by "atomized," but i hope that it has nothing to do with nuclear testing.
Posted on: 09th Mar, 2009 07:22 am
"guest, i have no idea what you mean by "atomized," but i hope that it has nothing to do with nuclear testing.
i suppose he is trying to tell about the computerization of the systems through machines.So in that way its true what the guest has said!
Posted on: 10th Mar, 2009 10:36 pm
automated? that might even make sense, but i dunno.
Posted on: 11th Mar, 2009 12:57 pm
First of all the Mortgage is what you are looking for should be from a nationalise bank wher the the intrest rates are fixed and they dont vary.

sercondly from the floating rate and the fixed rates of intrest opt for a fixed rate of intrest.
Posted on: 28th Mar, 2009 06:11 am
"floating" interest rates are just that...floating. these are not comparable to "variable" or "adjustable" rates. all that floating means is that you've not yet locked in (guaranteed) a specific rate when you've applied for your loan.

yes, fixed rates are definitely more secure - after all, you know what you have and what it'll be for the duration of your loan.

chtnggd please dont confuse people with your lingo.
Posted on: 30th Mar, 2009 11:30 am
I couldn't believe it when a friend told me yesterday that his loan officer just used zillow for comps on his refinance. Zillow is not very accurate at all in our area.
Posted on: 01st Apr, 2009 09:31 am
Thank you for the update and i will definitely keep this in mind while atempting for a mortgauge.
Posted on: 01st Apr, 2009 10:30 am
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