MORTGAGE MISTAKES
Failing to account for all costs
While mortgage calculators can be really helpful and show you lots of useful information, they’re only as good as the numbers you plug into them. A calculator designed to show you your monthly mortgage payment will provide you with an estimate of how the loan’s principal and interest breakdown on a monthly basis — but it can’t show you what your properties taxes will be, and it may not take into account your specific homeowner’s insurance policy.
Forgetting to factor in these additional costs, along with all the other expenses associated with homeownership, can add up to a big calculation mistake on how much you’ll owe each month.
Not learning about the whole process ahead of time
Did any of the above sound foreign to you? If so, it’s time to head back to the drawing board and focus on education first. To be a savvy consumer who makes the most of their money and avoids costly mistakes, it’s important that you understand the mortgage process from start to finish.
Start by reading up on the mortgage industry. Create a list of questions that you need more details about and take them to a trusted professional. You can talk with a real estate agent, attorney, or better yet, a fee-only financial planner. Look for someone who can work as your fiduciary to get your financial questions answered.
Taking the time to inform yourself first is the best investment you can make in this entire process.
