Biggest Mortgage Mistakes

On our show, Real Estate Uncensored, we went over the biggest blunders or mistakes that people make when buying a home, selling home, mortgaging or financing a property, and investing.   Obviously, we had a lot to say about the biggest mistakes home owners making getting a mortgage.  The problem with these mistakes is that they aren't spoken about enough for most people to learn them and then avoid them. 

The first mistake people make when it comes to mortgages is not being Pre-Approved from a reputable company.  What's worse, many people will get Pre-Approved but they will pay for it.  You shouldn't have to pay for the right to do business with someone.  If I get $1,000 bucks from you to Pre-Approve you then I'm not too motivated to do much more.  If you go looking at houses without a Pre-Approval letter its like going to the mall without your wallet.  You don't know how much or how little you can qualify and then your emotions start dicating your purchase and not your logic.  Seller's want to accept contracts from willing and capable buyers.  If you submit an offer without a Pre-Approval letter then you are just willing, not necessarily capable. 

The second biggest mortgage mistake is not having a mortgage plan.  You have a plan for your car.  You have a plan for your mutual funds.  You have a plan for tons of things, but many people forget to make a plan for their mortgage.  Prior preparation prevents piss poor performance.  If you fail to prepare then you prepare to fail.  The will to succeed is nothing without the will to plan.  We've heard them all before.    YOU NEED A PLAN.  This will likely be your largest liability or your largest asset.  For sure, you will have it for a long long time.  Say 30 years or so.  An effective mortgage plan will show you how your mortgage can be incorporated into your short and long-term personal and financial goals.  It doesn't need to be just another monthly payment.  Should you have a 15 year mortgage or 20 year mortgage?  Should you pay extra principle once a year, every two weeks, or never?  Is a interest only loan right for you?  Will putting a little less money down help or hurt your overall financial situation?  These questions and hundreds more will answered with the right mortgage plan.  Visit http://www.houstonmortgageplanners.com for more information.    

The third biggest mortgage mistake that people make is listening to the wrong people.  It might be their brother-in-law who purchased his house 2 years ago and is now an expert.  Or how about the know-it-all realtor.  Many realtors begin thinking and speaking like they know everything about the loan process and mortgage financing.  From my experience, this couldn't be further from the truth.  They end of telling you advice that is contrary to the actual situation thus making things harder on you, us, and them.  There are a lot of radio and television personalities who also give mortgage/financing advise on a blanket scale.  They use a huge broom to sweep everyone into one or two categories and give advise that way.  If you don't have a mortgage plan that matches their advise then don't listen to them.  The only person who should be giving you advise on your mortgage is your loan officer/mortgage planner.  If you don't trust the advise then find another loan officer, but don't just listen to your neighbor because he's not qualified to advise you on your 30 year commitment. 

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