Before pursuing a mortgage it’s extremely important to do some research first. Not only can research give your insight into how the process will go but it will also prevent you from making some of the more common mistakes. This is why our team at Ace Mortgage Loan Corp. recommends everyone researching a mortgage the way they research their yearly vacations. We say this because some of the mistakes made can end up throwing away a whole lot of money, and during the mortgage process, this is the last thing anyone wants. For insight into some of the commonly made mistakes keep reading below or contact Ace Mortgage Loan Corp. for an expert’s advice. We are here to make sure you get to live in your dream home as affordably as possible.
Not Comparing Lenders
This is a clear example of a mistake commonly made that results in money being lost. The majority of people do not always know this but you can negotiate with lenders. A common misconception that leads people to be unaware of this is that there is some kind of law that makes it so every lender has to charge the same amount. This is simply not the case. You can save a lot of money by keeping your options open and vocalizing the different rates given to you by various lenders. The more lenders you talk with the more likely you are going to find one that gives you the rate you prefer. While this may seem like a process that will take a lot of time it is 100% worth it in the end when you pay a lot less than what the first lender was going to charge. One popular method for comparing rates and receiving a lot at a time is by using Zillow Mortgage Marketplace to compare and contrast all of the various lender’s rates. This way you can shop around without worrying about losing too much time.
Not Researching the Mortgage Process
When it comes to the mortgage process individual research is everything. While Ace Mortgage Loan Corps. has a team of experts who can answer your questions and help you through the process, you are still going to want some background information to lay a foundation. Some common terms thrown around while discussing mortgages are FHA loans, pre-qualifications, and closing. Knowing these basic and common terms will make the whole process a whole lot easier and will make it make more sense. Apart from doing research, you can ask questions and for clarification from your real estate agent, your Ace Mortgage Loan Corp. team member, and others who have gone through the mortgage process before. When it comes to purchasing your first home, knowledge is power.
Being Unaware of How Discount Points Work
A part of the mortgage process includes discussing discount points. This is an important part of the process that you may or may not consider buying. However, regardless of if you plan on buying them or not, you should still be aware of how they work. Discount points have an upfront cost for all who decide to buy them and you gain them back by having a low-interest rate over the life of the loan. This entire concept depends on how long you are going to be living in the home. If you are planning on living in your new home for decades to come then you may be more likely to consider this purchase; however, if you are going to move out in a year than you may not live in the house long enough to break even on these discount points. To learn more about how this system works we recommend giving us a call or using an online discount points calculator.
For all of your mortgage questions, Ace Mortgage Loan Corp. has you covered. We know the process can be confusing and exhausting, but we are here to make sure you not only understand everything but are also happy with how everything is going. To learn more about common mortgage mistakes and how to avoid them, give us a call today at 954-777-4774. We are looking forward to hearing from you!