By Norman Green
Ways a Buyer Mess Up When Getting a Mortgage Getting a mortgage is a popular step most first-time homebuyers take when purchasing their homes. Yet, it’s the most dangerous, complicated, and stressful process. Most homebuyers attest to how difficult getting a mortgage is, and some lenders aren’t even trying to simplify the process.
Here are some of the ways a buyer mess up when getting a mortgage.
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Ways a Buyer Mess Up When Getting a Mortgage WAITING TO HAVE YOUR 20% DOWN PAYMENT COMPLETE Making a 20% down payment is a conventional rule when one is applying for a mortgage. You must have heard it from lenders, bankers, and even read it all up on real estate sites. Making a 20% down payment is beneficial because it prevents you from paying additional monthly fees, also known as Private Mortgage Insurance. Considering the current mortgage rate and the relatively stable economy, waiting for the golden 20% might not just be ideal anymore. This is because the more the clock ticks, the higher the mortgage rate could go. Not forgetting that home prices could also go up. l
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owever, some first-time homebuyers do make mistakes in the process because they fail to make proper research. Many things can go wrong when trying to get a mortgage, and if you are not vigilant, you could fall into a massive trap.
