Common Mistakes People Make When Financing A Home Purchase
If you’re in the process of purchasing a home, you cannot help but be excited about finally becoming a homeowner. While it’s easy to get wrapped up in this excitement, it’s essential that you do not get carried away, as there are many crucial financial factors to consider that need a calm head.
For starters, buying a house usually requires a massive investment, and the repayments keep you locked in for decades, which means there is very little room for error. Unfortunately, all too often, people skip the essential steps that formulate a successful home purchase and end up missing out on their dream home.
At CML Canadian Mortgage Lender, we understand how challenging financing a new home can be. To ensure you avoid making costly errors, we have listed three of the most common mistakes people make when financing a home purchase and how to avoid them.
1. Not getting pre-approved before house hunting.
If you don’t get pre-approved before house hunting, then you will not know how much you can afford to spend on a new house. A pre-approval assessment will outline essential factors such as your debt and credit score, and give your real estate agent a clear indication of your budget.
2. Adding home improvements to the mortgage after a home is purchased.
Often clients seek additional mortgages once the mortgage for the purchase is approved and funded. In most cases, it is turned down. If you’re purchasing a home and then plan on making improvements to it, you need to add the cost of the renovation to the purchase price. To do so, you need to provide written estimates and submit it along with the purchase contract.
3. Choosing to use a bank for mortgage financing.
The traditional route to securing a mortgage has been to visit a bank. However, a bank will only offer its limited products. By contacting a mortgage broker, you will gain access to a wide range of mortgage products and multiple lenders, which would provide excellent options and which will result in greater savings.
For the best mortgage services in Regina, Saskatchewan and the surrounding areas reach to the experts at CML Canadian Mortgage Lender. We are a mother-daughter duo, and with over fifty years of mortgage experience between us, we will help you to avoid common mistakes associated with mortgages.
Our services include first time home buyers, new to Canada, home equity line of credit, refinance, purchase or refinance plus improvements, lenders cashback, spousal buyout, business for self, and reverse mortgages.
We serve clients across Regina, Emerald Park, Pilot Butte, Balgonie, Lumsden, Regina Beach, White City, Moose Jaw, Milestone, Sedley and Vibank, Saskatchewan.