Common Mistakes People Make Before Closing On Their New House
You’ve found the perfect home, accepted an incredible offer and are all set to move in. Things seem to be going your way. However, right before closing on your mortgage deal, you realize that you’ve made a few careless moves that have jeopardized everything. This often happens when people are unaware of the mortgage process, listen to wrong advice or avoid the expenses of a mortgage agent.
A mortgage agent is an excellent investment as they not only have a deep understanding of the mortgage industry but the real estate world as well. Moreover, they are up to date with the regulatory changes and can meet all compliance regulations. Besides, these experts make sure you do not suffer from a temporary lapse in judgment which has the potential to delay or disrupt the closing. In the worst case scenario, without the assistance of a mortgage agent, your loan could be denied.
To help you avoid costly errors these as well as others, Castle Mortgage & Financial Group with the Dominion Lending Centres has compiled a list of the most common mistakes people make before closing on their new house.
1. Not confirming the down payment. Before confirming your loan, a bank or lender will want to see your transactions in the ninety days before closing. If you don’t show them the down payment in your bank account for the last three months, they can decline a deal. Make sure to confirm all the relevant information about the down payment to your mortgage agent before the closing date of your new home.
2. Not providing proof of legal closing costs. In addition to the down payment funds, you should also provide evidence of the legal closing costs of 1.5% of the total purchase price.
3. Making a big purchase just before closing. When you buy a new car or furniture before your closing date, you may be left with more debt than earlier. Any major purchase will appear on your credit bureau and lenders will occasionally ask your mortgage agent to extract a new credit bureau before closing. This can potentially cause your funding to be declined, as you could be over a certain level of debt service ratio. It is crucial to save any major purchase until after the closing date.
4. Not buying a home within your means. Not everyone can purchase their dream home at the first attempt. Buy that fixer-upper and let it build equity for a few years before buying your dream home. It helps to ask your mortgage agent for a pre-approval. A pre-approval sets your limit on what you can financially afford.
5. Not seeking the advice of a licensed mortgage agent. Often, people feel more comfortable with their bank. However, the bank can offer a limited range of products and interest rates. On the other hands, a licensed mortgage agent has access to over a hundred lenders and are dedicated to finding the best mortgage deal for you, and in most cases at no cost to you.
To get the best services from your mortgage agent, make sure you provide them with all the information they need to ensure that your funding process is without errors or issues when it comes to the closing day. You don’t want to encounter a last-minute problem that may affect your loan application.
For the most dedicated mortgage brokers in Stouffville, Ontario, reach out to Castle Mortgage & Financial Group with the Dominion Lending Centres. We are a licensed mortgage firm offering professional mortgage services for over ten years. We provide home purchase mortgage, first time home buyers mortgage, business owners mortgage, renewals, refinancing, debt consolidation, credit challenges, small loans, and DLC visa. We also offer the best rates and terms giving you more options to choose from when purchasing or refinancing your home.