DEC 13, 2017 AT 01:48 AM
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!
3. You are too positive about your budget
If you never account for your money, you won’t be successful in dealing with any banking products. Mortgage is a long-term commitment, so you need to be realistic with all accounting actions. Look at how much money you’ve been saving monthly over the last one year. That’s the real amount of money you can afford to pay for a loan.
If you plan to allocate 90% of your income on mortgage so as to repay the loan within the shortest time possible, then such a plan is unreal. And this is the number one mistake that young families with no solid experience in domestic budgeting make.