Choosing a house to purchase can be both an exhilarating and exhausting experience. The idea that you can finally afford your own home will definitely make you excited and give you a sense of pride and accomplishment. All these emotions, when combined with the long hours spent browsing real estate advertisements and inspecting houses for sale, will wear anyone’s energy thin. However, at the end of a long day of house hunting, you’ll probably feel satisfied with yourself and argue that all your efforts are worth the fatigue.
Before you dive into the real estate market and avail of a mortgage loan, you should have a basic understanding of what a mortgage is. A mortgage is a type of loan where the house you are purchasing with the loan acts as collateral. In a regular loan usually there are no collaterals and lenders grant the loan based on an assessment of your actual ability to pay it back. However, buying a house requires a large sum, and as such, the risk for losses becomes even greater for the lender. This is why valuable collateral should be provided for mortgages, which in this case is the house itself.
Given the large amounts of money that go into a mortgage, the application process for one is often complex and littered with requirements that you might easily overlook. Mistakes in applications can result in paying higher fees or interest rates, and in some cases, your application might even be denied. Global eye Dubai finance experts name credit mistakes as one of the most common reasons why people experience mortgage pitfalls.
The biggest credit mistake that you should avoid is misrepresenting your income and credit. The problem with doing this is you can easily lose your mortgage when the lender takes a look at your credit. Another credit-related lapse that you should avoid is not maintaining your credit score. What most homebuyers don’t realise is that lenders will usually check on your credit before the closing date. If your credit score has dropped, the lender may choose not to forward the funds that you need to close the deal. As such, it would be wise to maintain your credit scores, especially if you’re already nearing the closing date.
Global eye Dubai advisors warn that there are a myriad of pitfalls that can be associated with your credit alone. Other pitfalls that can hamper your house buying experience include hidden features such as early redemption penalties, products that are required for purchase before you can avail of mortgage, mortgage seasoning, and changes in deals with some brokers.
The joy of house hunting can be cut short by all the legalities and paper work that come with it. If you are buying a home by availing of mortgage loans, the process can get even trickier. Global eye Dubai finance consultants offer expert assistance in all things finance, and with their sound and unbiased expert advice, you will be able to purchase the house of your dreams.