4 Mistakes Homebuyers Make When Trying to Get the Best Mortgage Rates
 August 5 2016     Posted by Siemens Group

Buying a home is not a simple process. It requires the buyer to carefully analyze their options and to work alongside specialists in the industry to ensure an affordable purchase. In completing this process, many buyers make mistakes in analyzing the mortgage marketplace and the available rates. The team at Invis – The Siemens Group has many years’ experience guiding homeowners in achieving their purchase objectives, and in this latest article they look at the top five mistakes buyers make when trying to get the best mortgage rates.

1. They Focus Solely on Adjustable Rate Mortgages

While adjustable rate mortgages might offer the buyer the best value for their purchase requirements in the long-term, this isn’t always the case. Some buyers only focus on adjustable rate mortgages, and then find they’re unable to make the payments when interest rates rise at a later date. Review both adjustable and fixed rate options to determine which company offers the best mortgage rates.

2. They Trust Disreputable Lenders

While the world’s leading banks will go through a number of steps to ensure homebuyers have the required assets and income to afford a mortgage, some other lenders won’t take on these steps. This can lead to the buyer taking on a mortgage and interest rates that are far too high. It’s important for buyers to carefully consider all mortgage loan documentation, and to be suspicious of lenders that only require a small amount of documentation to complete a large loan for a property.

3. They Don’t Get Prequalified

Going into the mortgage rate negotiation without first being prequalified for a loan is one of the costliest mistakes homeowners can make. This lender has little information on the buyer and requires the prequalification process to determine how much the buyer can afford and what type of mortgage they require. Without the prequalification process, neither the lender nor the homeowner has a clear idea on the homeowner’s finances and this can lead to the acceptance of higher interest rates that soon become difficult to pay.

4. They Don’t Work with Mortgage Brokers

Many buyers make the mistake of going directly to the banks when they require a mortgage loan. This mistake can give the edge to the bank in all negotiations, as the buyer alone has little leverage. Working with specialist mortgage brokers can help buyers to achieve the best mortgage rates for their budget. It can also reduce the long-term costs of homeownership.

To learn more on the mistakes homebuyers make when trying to get the best mortgage rates, turn to the mortgage experts at Invis – The Siemens Group by calling them directly at 604-351-7438or visiting their business website at www.siemensgroup.ca.