You can put thousands of extra dollars in your pocket if you know how to get high mortgage rates. It isn’t surprising that the average person can spend as much as between $500,000 to $1,000,000 in their lifetime on mortgage payments alone. It’s quite typical to pay for your loan 4 or 5 times over through the life of that mortgage. A few rate point differences can mean the difference between thousands of dollars every year. Avoid these severe mortgage mistakes at your peril.
-
Avoid credit errors
A little known fact is that studies now estimate that over 79% of credit reports contain errors. Your credit bureau has errors that will hurt your chances of getting the lowest possible mortgage payment. They may be someone else’s mistakes or computer errors that have nothing to do with you. Ordering your credit report is free from both Equifax and TransUnion in Canada once per year. You owe it to yourself to verify the information and its correctness. Typical errors are incorrect account numbers and incorrect balances; accounts closed are still being listed as open and even other people’s account info on your bureau.
-
Try to stay away from the first deal your bank offers.
Banks make their money from getting the most money out of people, not by giving them the most significant breaks. Banks love to provide loans to “low risk” clients who have pristine credit and have an excellent, high-income, stable, secure job. However, this rarely applies to most people. With the increasing amount of fraud and higher verification needed, it’s getting harder and harder to get the best rate from a traditional bank. At the very least, you should weigh out multiple mortgage options. Check out a few mortgage brokers, and don’t forget to shop online with an excellent online mortgage application like the one at Canada Rates.
-
Please do not over-shop
Each time you have your credit pulled, such as on a mortgage application, an inquiry is made on your credit bureau. Generally, if you go above 7 or 8 inquires at one time, it will lower your beacon score. If you simultaneously get too many mortgages applications at once, you’ll lower your credit and end up costing yourself. Don’t make this rookie mistake. An excellent online form can shop your mortgage around without doing a formal credit pull, which can allow you to compare all the lenders without it costing you. Work smarter, not harder.
Avoiding these mistakes will help you get the best deal possible on a mortgage.
