Mortgage Advice

Mortgage Do’s and Don’ts

Do’s:

• Shop around for the best deal

• Prepare a solid budget so you know exactly how much you can afford

• Do your homework on the different types of mortgages, and the terminology involved. Talk to your mortgage lender on equal terms

• When comparing mortgages, use the APR as this gives a good idea of the annual cost of the loan

• Keep a copy of all correspondence with your lender, and get any verbal offers to be put down in writing

• Shop around for your insurances to get the best deal

• Ask your lender if there are any better deals on offer, and let them know you’re prepared to shop around for the best deal.

Don’ts

• Sign up for the first deal that comes your way. You could save a small fortune over the life of the loan if you can save a fraction of a percent in interest.

• Don’t let the introductory offers make you lose sight of the overall cost of the mortgage. Many lenders know that you will stay with them throughout the length of the mortgage term, so once they sign you up, you’re a cash cow for them for a very long time. Do the math before you sign any contract, and look beyond the gimmicks for the real cost of the mortgage.

• Don’t let the mortgage lender baffle you with terminology and numbers. If you don’t understand something, stop right there and ask them to repeat and explain it clearly for you. And if you still don’t understand, ask them to repeat and explain it again. There is absolutely no embarrassment in not fully grasping all the intricacies of mortgages and interest rates the first time around (or the second, or the third…).