Purchasing a home is a significant financial decision for most people, and understanding mortgages is critical to ensuring that you make the right choice. However, many people find the process of securing a mortgage overwhelming, and it’s easy to make mistakes that can have long-term consequences.
To help you navigate the mortgage process, Virtuo’s Gary Stein chatted with Homewise founder and CEO, Jesse Abrams, to discuss the five most common mistakes people make when applying for a mortgage.
Jesse Abrams, Homewise & Gary Stein, Virtuo
“Understanding all the different features that go into a mortgage could actually save you a lot more money than just focusing on rate.”
1. Don’t increase your debt after you have been pre-approved.
“If you were able to afford $900,000 before, you want to be able to afford $900,000 again when you’re closing”.
2. Shop around for your mortgage and make sure you understand what is written in the fine print so that you can make a fully informed decision.
3. Don’t just focus on the rate – some lenders may have a really low interest rate, but don’t have key features that may be important to you, such as portability and pre-payment privileges.
4. A job change, even if your income increases, could impact your approval.
“Six months before moving into your home, don’t go job searching”.
5. Make sure your money is in one bank account and documented for at least three months before seeking mortgage approval.
“Banks want to make sure that you aren’t committing fraud”.
Talk to an Expert
If you’re in the market for a mortgage, it’s essential to seek expert advice to ensure that you make informed decisions. A mortgage expert can help you understand the various options available, determine the best mortgage for your needs, and avoid common mistakes. With this knowledge, you can save money and feel confident that you’re making the right decisions for your financial future.
“Speaking to an unbiased advisor to provide you with the best advice is a great way to make sure you get the best solution”
About Jess Abrams & Homewise
Jesse Abrams founded Homewise in 2018 with the goal to “provide the best mortgage experience for every home buyer in Canada”. Homewise is an online mortgage brokerage that negotiates with over 30 bankers and lenders to find the best rates and features for their users. Virtuo has partnered with Homewise because we have a shared vision: to revolutionize the home buying experience. Like Virtuo, Homewise simplifies a traditionally complicated process through technology, with an actual human to provide support each step of the way. Sound familiar? We thought so too!
In the market for a mortgage, or just want to check it out? Visit Virtuo’s affiliate Homewise link to get started.