There are so many different types of mortgage that finding the right one can seem more than a little daunting, and without the help of an independent mortgage broker, the chances of landing the best deal are remote. There are many pitfalls to watch out for when borrowing money for a real estate purchase, and here are just a few common mortgage mistakes that you can’t afford to make.

  • Not Scanning The Market– Don’t make the mistake of dealing with one mortgage broker and taking his word for it that the deal he is offering is the best available. Independent mortgage brokers have access to many lenders, and once the expert knows what you are looking for in a home loan, he can source the best deal from a selection of lenders. Using an independent mortgage broker is free to the borrower, as the lender provides a small remuneration, and you would be very wise to utilise his services. Of course, you should clear any outstanding personal debts prior to starting the house buying process, otherwise your chances of success are limited.

  • Mortgage Approval Rejected – Prior to applying for a home loan, you should find out what your credit score is, which you can do with this link. Of course, you must seek loan pre-approval before you start looking at potential properties, as no seller would take you seriously without mortgage preapproval. The best solution, if this happens, is to talk to Australian bad credit debt consolidation loan providers, who can help you boost your credit score by paying off the outstanding loans. This type of loan provider has helped thousands of people get a mortgage by repairing the damage caused by a less than perfect credit history, and with only a single monthly repayment, all the outstanding debts can be cleared.

 

  • Failing To Take All Costs Into Account– property is a costly exercise, and you should crunch all of the numbers and if you find that on paper, you can manage the purchase, then you can go ahead with some confidence. You must factor in things like, stamp duty, conveyancing and legal fees, furnishing and removal costs, as well as the mortgage repayment, which will consume most of your income. It is wise to sit down and list everything you will have to pay, which will help you to crunch the numbers.
  • Changing Your Job Prior To Mortgage Application– A new job might mean a little more money, but the fact that you have just started with this company won’t stand you in good stead with a mortgage lender. They like to see stability, with at least a couple of years working for the present employer, and that isn’t to say you shouldn’t change your job, just wait until you’ve been approved for a mortgage, then you can take a career step forward.

When applying for a mortgage, it is important that you don’t have any outstanding debts, and if you do, then take out a debt consolidation loan with an online loan provider, which will remove the black marks from your credit score, thus greatly improving your chances of a successful mortgage application.