Four Pieces of Mortgage 'Advice' That You Should Take With the Proverbial Grain of Salt

If you are looking for a new home and have been talking about it to friends and family, you may have received substantial advice related to mortgage. Unfortunately, there is a lot of poor advice that people offer, which you must avoid. This article will discuss four mortgage-based advice that you must take with a pinch of salt.  

Tip 1: Only Get A Mortgage From Your Bank

You may have heard the advice that you must only opt for a bank that you frequently use to get a mortgage. Several people think that if you go to a large bank that you have a history with, you can enjoy several advantages. Unfortunately, this is not true. Instead, find a mortgage lender who offers all the products that align with your current and future financial needs.

Tip 2: Always Take The Lowest Interest Rate

Next, people often recommend finding a mortgage product with the lowest interest rate. However, the exact rates rely on several parameters, and when you opt for the lowest rate, you may end up missing out a few favorable mortgage terms. Hence, always seek the assistance of your mortgage professionals so you understand your alternatives.  

Note that, over time, you can learn to refinance your mortgage in case the rates steer in a profitable direction for you. This way, you can feel safe when you pick the right mortgage right now.

Tip 3: Always Borrow As Much As You Can

Next mortgage advice that you may have received involves borrowing as much as you can. However, a mortgage is a loan and you are required to pay it back. The amount that you end up borrowing has to align with your requirements.  

Tip 4: Don't Bother With A Pre-Approval

Lastly, people may have asked you to avoid the mortgage pre-approval process. Although you may find an opportunity to do so, this is a bad idea. Several home sellers would need evidence of your pre-approval before they are ready to commit to selling their home. In case several other people are bidding on a home, those with their finances in order will most likely bag the house. Thus, if and when you are ready, go for a pre-approval.

These are some suggestions you may have come across online or in regular conversations. If you are all set to discuss your mortgage options with the experts, get in touch with our professional team. We will be glad to share our insights as well as experience so you can select the best mortgage.

In case you are seeking a professional real estate agent to assist you in finding your perfect home, get in touch with us at info@charissarealty.ca and +1 (877) 824-2747.

Charissa Realty, for moments that matter.