Taking out a mortgage is a large investment, sometimes spanning a lifetime, and one has to be careful to avoid certain pitfalls and mistakes that can cost them dearly for the future. So, here is a list of tips to keep track of when going in for a mortgage:
Tip #1: Avoid Interest Only Mortgages
This is one of the most common mortgages that first-time buyers fall for, and while it does have its place in the market, it is important to remember that a capital repayment type of mortgage is preferred.
Tip #2: New Building Enticements
Builders often offer special deals which include partial or full deposit or even paid up stamp duty to get buyers to purchase a flat or home for themselves. However, if a deal seems too good to be true, you can be sure that the costs involved in these special deals will be included in the payments for the house.
Tip #3: Keep friends and partners out of the deal
One of the most popular ways to purchase a home these days is to include your friends or a partner, and since some relationships might not last all the way, this is one sticky situation that you don’t want to get into.
Tip #4: Insurance shopping
When one purchases a mortgage, the broker or lender also tends to offer you insurance for the home, and while it’s in their best interests that they sell you certain policies, it is best that you look around before agreeing to any policy that they offer.