Think Before Buying a Home
Availing of a mortgage means many things to those who wish to be homeowners. For most, it means entering into a lengthy and detailed process that requires a significant amount of paperwork — much of which is used to prove the identity of the borrower, source of income and the mortgage applicant’s prospects for repaying the loan.
There is no shortage of people who have travelled this road before you and they may be painfully aware of some of the pitfalls that lie in store. Thus it pays to be a conversation starter with friends, family and even strangers on all things mortgage related, as you never know where that helpful tip is going to come from.
You too might one day offer advice on the subject and your willingness to listen and observe now will determine whether or not you tell your future tale with a knowing smile or a tinge of regret. Read, listen to the experts, keep an open mind and take things at a slow place and you will likely reap the rewards.
The quality of your mortgage package can be heavily influenced by the economic climate at the time, as well as both the property and money markets. Sometimes, the most important decision you can make is choosing the right time to go for a mortgage.
The diversity of options in the mortgage market is such that many like to have a re-think after a few years and opt for something a little different. Those who have experienced changes in their personal or financial circumstances welcome this level of flexibility. Others prefer to make a long term commitment and stick with it but are comforted to know opportunities to switch are available.
Like other products out there, mortgages regularly change and evolve as banks come up with new ways to both retain existing customers and entice new home seekers. They are well aware that people will compare mortgages in an effort to find the one that best suits their circumstances.
Recently, many banks have been aggressively targeting the switcher market, hoping to secure new business from those dissatisfied with their current mortgage deal. It is a highly competitive market and many offer big incentives to switch mortgages. However, it is advisable to check for penalties for paying your mortgage off early, moving to another provider before the tie-in period expires, or for missing a payment. These excess costs can take the shine off what appears, at first glance, to be a good deal.
Solid, impartial advice will ensure you don’t rush into anything and make costly mistakes. There are positives and negatives associated with all the available options; patience and vigilance will lead to a thorough understanding of them all and the pitfalls should then be avoided.
Disclaimer: Matthew Pressman writes for a wide variety of commercial clients. This article is intended for information purposes only and readers should seek additional information before taking any actions based on its content.
