Mistakes to Avoid When Getting a Mortgage From a Merrimack Mortgage Company

Getting a mortgage is probably the most significant decision you will make in your lifetime, and you want to make sure that no mistakes are made during the mortgage buying process. Here in Merrimack or anywhere in the USA, the home buying process can be tricky to tackle. With that being said, there are some common mistakes that people make when buying a mortgage from a Merrimack mortgage company. Knowing the most common mistakes made by homebuyers when taking a mortgage can avoid them during your mortgage buying process. To help first-time mortgage buyers or any mortgage buyers out there, you should avoid some mistakes during your mortgage purchase process.

Not hiring a Merrimack mortgage agency

Mortgage agencies and Merrimack mortgage agents such as Nextgen Mortgage help you get a mortgage that best suits your individual needs. Mortgage brokers and agencies can also help you save up on fees and offer loan products that you may not be able to get directly from lenders. However, a mortgage broker enables you to save money and saves time, and reduces the amount of effort you have to put in when getting a mortgage.

By not hiring a mortgage broker, you miss out on exclusive mortgage offers and products, and you may end up buying an expensive mortgage that you could have gotten for a lower price. In short, a mortgage broker represents and protects your interests when getting a mortgage from a lending party. So you are better off having the support of an experienced broker when making such a big financial commitment. Merrimack Mortgage rates vary, and you will be surprised to know the difference between the mortgage rates you get from a mortgage broker instead of the rates you get if you approach the mortgage lender directly.

Putting a small amount of money down when getting a mortgage

Another common mistake people make when getting a mortgage is paying little money as a down payment for the mortgage. While most prospective homeowners would jump at the idea of a mortgage that doesn’t require them to put down a lot of money, this will become a drawback later down the road. Here in Merrimack or anywhere in the US, getting a mortgage with a lower downpayment will usually result in paying higher interest rates. However, government-backed – USDA and VA loans can land you a mortgage with 0 down payment, but then the government is the guarantor.

In addition to these loans with a lower down payment, give you lower equity in the home you are purchasing. For example, when buying a home by making a 5% down payment for the mortgage, you have 5% equity in the house. On the other hand, a 20% down payment means you have 20% equity in your home.

Not shopping around when picking a mortgage product

As mentioned above, there are several mortgage products you can choose from by going to a broker. On the other hand, going to a lender means you have to pick from the few mortgage products they have to offer. So it is a good idea to shop around for the best possible mortgage instead of picking up the first mortgage product you find; doing so might be one of the biggest mistakes homebuyers make when taking a mortgage.