In this Finance Wikia page, Mortgage Loans – Mistakes and Avoiding Mistakes, you will find many common mistakes which people make while taking mortgage loans. Please share your experience on this page so that others may avoid similar mistakes. There are many mistakes with borrowers of mortgage loans may make or generally make. The following is an outline based on the personal experience and reporting in the media. You are requested to add your experience – that will be very valuable for other users to avoid similar mistakes. Please do not feel uncomfortable - it is certain that you can get a really nice mortgage loan which is exactly right for your requirements and with which you shall feel comfortable. However, this requires a real home work and avoiding the traps waiting to capture you and push you in a direction not bargained for. There are many mistakes which people make while contracting mortgage loans but this should not make you nervous. With a a little home work, you shall surely win the game and own a decent home without any trouble of over-pricing and similar problems.

Mistakes and Avoiding MistakesEdit

Loan Processes
Most of the people are not aware of the loan processes and the loan salespeople comprising of a large class of operatives including mortgage officers, mortgage brokers and many intermediaries take advantage of this general ignorance. Once they sniff this ignorance in the target, that is, we as a buyer of mortgage loans, the loan salesperson bounces on us to bind us in a way which we never imagined. These loan salespeople are very experienced and they can size us in few minutes. The only way out is to prepare yourself with all the possible relevant information before talking to these people. Unfortunately, this rarely happen and in the zeal to acquire a property, many fall prey to the designs of unethical sales persons.
Loan Application
After the initial exchange of courtesies and discussion, the point of Loan Application generally comes. Now, once you have the Application Form, please read it carefully, better you take it home to re-read and understand the same. Many simply ticks answers to questions and reveal a number of intimate information while completing the Application Form. The loan salesperson uses the information to form a financial and personal profile of you and your background. Naturally, they shall then use the same to direct you towards a particular type of mortgage loan deal which may not be suitable to you, but may suit the salesperson’s requirements. This type of game is called Beating the Customer in the internal jargon of the sales persons associated with selling mortgage loans . Please be wary of so many information asked in the Loan Application Form and ensure that you are not beaten.
There are many other pertinent issues related to Mortgage Loans – Mistakes and Avoiding Mistakes. Some of them are covered under the following points:
  • The Appraisal
  • The Commission
  • Researching
  • Paperwork
  • Emotional issues

External resourcesEdit

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