Common Mistakes People Make When Buying A Home
For many, buying a home is one of the biggest financial investments they will ever make in their lives. This process can be both exciting and filled with complexities! Without proper guidance one might be susceptible to making errors that will cost them thousands of dollars.
For this reason, it’s imperative that you work with an expert to assist you when looking for financing options in the home-buying process. These professionals will guide you without bias while applying for a mortgage and ensure you don’t miss out on factors that are important to meet your present and future set goals.
Unfortunately, like most homebuyers, you may have preconceived notions about the mortgage application process that could jeopardize your entire home buying decision.
So to help you steer clear of costly errors and help you make more informed decisions, Canadian Tailored Mortgage Solutions has put together a list of the most common mistakes people make when buying a home and how to avoid them.
1. Thinking you won’t qualify for a mortgage
Getting qualified for a mortgage is easier than you think and is a crucial part of the home-buying process that gives the buyer an estimated target of their purchase price. This helps the buyer to shop with confidence within their price range. For many, however, due to various employment, credit, downpayment, and/or immigration reasons, may think they won’t qualify for a mortgage. This process simply cannot be skipped. It is advised that you meet with a qualified mortgage agent and know your options. Fill out a free, no-obligation application to receive unbiased advice you need to get qualified sooner than later. If you’re not ready to shop for a home just yet, one of our agents will work with you and give you pointers and tips that will help to get you prepared in no time.
2. Relying on banks for mortgages
Most borrowers make this mistake due to comfort, familiarity, or lack of knowledge of the broker space. The banks’ only obligation is to sell their own mortgage products. What’s more, the mortgage consultants are not licensed experts within the mortgage field, and they are only allowed to sell their bank’s products. So it’s common to find more of a “one-size-fits-all” approach at traditional banks. It’s sad that if you do not fit within those guidelines, you cannot be helped.
Canadian Tailored Mortgage Solutions (CTMS), on the other hand, is where 'mortgages are tailor made' to suit the clients' present and future needs. Our one-stop-shop offers different options to the clients we serve. As a licensed brokerage with licensed mortgage professionals within the mortgage field, we are able to give the options of many traditional and alternative banks, private lending, and credit union institutions. We understand that the “one-size-fits-all” approach does not work well for the majority of Canadians. CTMS's goal is to find you the right mortgage at your lowest rate!
3. Not obtaining a mortgage pre-approval
Like most mortgage borrowers, you may underestimate the process of getting a pre-approval. Being pre-approved allows you to hold the current rate while you shop and provides you with an estimated value of what you can afford. Mortgage pre-approvals apply to consumers who are purchasing, refinancing, consolidating debts, or taking out equity.
Our agents have the ability to rate-hold a file for up to a hundred and twenty days. We have all seen the fluctuation of rates and know that a low rate saves thousands of dollars. Contact our mortgage agent today and get our tailored experience.
4. Misunderstanding qualification vs. affordability
Conversations with bank representatives often end up with mortgage consumers getting their maximum qualification amount without a breakdown of other costs associated with purchasing.
CTMS, on the other hand, advises you on all the costs associated with obtaining a mortgage to ensure the purchase fits your budget. It’s our job to help you prepare for the entire process of the purchase.
5. Focusing too much on interest rates
Focusing too much on low rates is another common mistake. While the lending institution might set the rates low, the payment structure might not readily fit with your current or future situation. Rates are an essential part, but it’s best practice to understand the fine printed details because what might look like it will save, might cost you double in the long run.
We, however, look at the fine prints and understand the full offer of what the lenders are proposing. We then educate you on the different types of mortgages, their payment structures, and their flexibility so you make a well-informed decision. That’s fitting to your set goal.
If you’re looking for a mortgage agent within the GTA, reach out to Canadian Tailored Mortgage Solutions. Our vision is to help you get the best possible financial help you need for present and future mortgage plans. Our mortgage agents are well-versed in the mortgage industry with over thirty years of experience dealing with mortgages. We continue to set new standards with our honesty, reliability, and forward-thinking.
Our services include mortgage pre-approval, home equity loans, mortgage renewal, debt consolidation mortgage, first-time home buyer mortgage, private mortgage, reverse mortgage, investment property mortgage, second mortgage, construction mortgage, commercial mortgage, renovation loans.