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Making a mortgage mistake could potentially cost you a lot of money in the long run. Your mortgage is most likely the biggest financial obligation in your life and you should treat it with the respect that it deserves. Making sure to avoid mortgage mistakes is critical to your sustained financial success. Here are a few significant mortgage mistakes to watch out for on your part.
1. Getting In Over Your Head
The biggest mistake that many home buyers make is to get the biggest mortgage that they can possibly qualify for. They think that they can afford a certain payment only to find out later that they cannot. You will be much better off to get a smaller, more manageable monthly payment instead of barely scraping by each month.
2. Rushing Into an Agreement
Many people qualify for a mortgage, make an offer too quickly. Slow down and move slowly when it comes to the terms of your mortgage. Many people rush into an agreement and find out later that they agreed to something terrible.
3. Questionable Loans
Many homeowners agree to terms that are unfavorable just so that they can get a mortgage. Interest-only loans, adjustable rate mortgages and 50-year mortgage are a few examples of mortgages that usually hurt the borrower in the long run.
