It is becoming easier and easier to realize the dream of home ownership through a mortgage. However, errors can occur during the process that, if not avoided, will make the dream a big problem.
Fortunately, if proper precautions are taken, there is no reason to worry. To help you stay out of trouble, we have prepared this article with four mistakes to avoid. Keep up!
1. Neglecting planning
Among the most common mistakes when making a mortgage, lack of planning is among the most harmful.
Perhaps driven by feelings such as emotion and anxiety, many people not properly advising financial conditions before applying for credit.
Financial planning is critical so that you can get a real sense of your financial health and the impact that financing installments will have on your budget.
Try to put your financial life at the tip of the pencil by making a complete survey of all your expenses. Based on the results obtained, prepare a simulation of what your accounts would look like if you included the estimated benefit amount.
This will gather enough information to define potential budget cuts, as well as a sense of the maximum amount you can fund. Such information will be very helpful in avoiding impulse decisions.
2. Not taking into account the expenses involved
Not to be complicated when making a mortgage, which is a long-term commitment, you must be careful not to accumulate debts when you start paying the installments.
Many people face difficulties precisely because they do not take into account the expenses that occur in the period before the credit is released. To finance a property, it is necessary to meet certain requirements that often involve considerable costs.
The assessment fee, for example, is mandatory and cannot be included in the funding. Expenses with the issuance of certificates and the payment of taxes, such as ITBI, should also be measured.
It is essential to ensure that you do not need to take out a loan to cover these expenses, which still add to others, such as moving to the new home and delivering the rented property, if applicable.
It is worth remembering that the installments of a possible loan would be added to the financing installments, compromising all the planning mentioned in the first item. First make a simulation.
3. Omit active debt information
When you apply for a mortgage, you should be aware that the lending institution will do a thorough review of your application. Records are checked with public agencies and credit protection services.
Failure to provide active debt information in this case will only impair cadastral approval, delaying credit release. If you are in this condition, it is recommended to avoid mishaps.
Check with the financial institution for possible impediments and, if necessary, rectify the situation even before formalizing the request for funding.
4. Delay documentation delivery
As well as the omission of information, delayed documentation may delay credit release. Real estate financing involves a number of legal procedures, and keeping the documentation up to date is of paramount importance. If possible, gather the roles before you even file the request.
Still regarding the documents, a detail deserves more attention: most of the certificates, such as negative and marriage certificates, have an expiration date. Therefore, if delays occur during the process, there is a risk that the documents will expire and new copies must be issued and paid for.
To avoid problems, it is important to avoid errors that can be avoided. If you are planning to apply for a mortgage, take the necessary precautions and get ready to make the most of your new property.
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