Common Mistakes Made by First-Time Mortgage Applicants

Taking out a mortgage to finance a home has become a very common occurrence. Yet, as common as it is, it is important to keep certain points in mind to ensure you make the right choice on your mortgage. First-timers may often make mistakes while taking out a mortgage as they are new to the process. If you find yourself in this situation, here are three common mistakes made when getting a mortgage by first-timers. Settling for the amount the bank recommends You have to remember that your mortgage means business for the bank. While you may fear rejection of the application, in many cases, the bank may surprisingly approve you for an amount that is much larger than what you initially expected. This can turn things around and make you consider buying something beyond your means. Yet, this can often cause you to misjudge and buy something that is too expensive for you to pay back in the long run. Instead of making this error, decide your budget and how much you can afford. Even if the bank offers you more, resist the temptation to overspend and stick to the amount you know you can afford. Making an extremely low down payment It is always advisable to put in at least 20% of a down payment when taking out a mortgage.
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Common Mistakes Made by First-Time Mortgage Applicants

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