DEC 13, 2017 AT 01:48 AM
Do you have spare 150 000 $ in your pocket? This is the amount of money one can easily overpay after taking the wrong kind of loan. Mortgage has both its good and bad sides. It allows us to acquire and live in our own house and stop paying rent every month. But on the other hand, it’s a huge debt and one you should be careful about.
Today we review common mistakes that most people make while taking such loan. It’s probably the biggest debt you will ever incur in your life. So, it is better to treat it with the seriousness it deserves. Here are several common mistakes you should never make or repeat!
1. You don’t know which perks and support programs you are entitled to
A house might be worth 400, 000 $ or even more. Government proposes some perks for newly married couples, families with 3 or more kids, military officers, and social workers. In some countries you would get 20% discount for a flat or house, with one of those conditions.
The only problem is that people usually don’t know when they are eligible for a perk. The governmental support system works perfectly if and when you are aware of it. However, if people don’t apply, they aren’t likely to get those perks.
2. You didn’t study bank low down programs
Big banks usually offer a wide range of options for mortgage clients. But if you are not much into the financial sphere, you probably won’t take note of the available and rewarding ideas. For example, some banks have low down programs for mortgage which work easily: if you buy insurance in some of partners’ companies, you get 5% low down payments or some other upsides for your credit.
You still need to buy insurance, and it usually doesn’t change the price much. With expensive insurance packages, even 5% off the interest rates would be quite a significant discount. Look out for gainful propositions and ensure don’t lose your chance of getting discounts!