Mortgage applications are on the rise as rates are close to hitting its lowest in three years. While now may be the best time to go house searching, it may be good to stop for a moment, re-evaluate your goals and find time to carefully think of your options in buying a home.
As previously reported here on Realty Today, many buyers are taking advantage of the low mortgage rates. Mortgage applications have increased 10 percent last week, as mortgage rates are almost close to hitting its lowest over a period of three years.
This may be a good indication for most people to start looking for a new home in the market and take advantage of the low mortgage rates. However, Realty Times notes that buyers should avoid rushing into the whole process if they do not want to commit major mortgage mistakes that they will regret later on.
Here are three mortgage mistakes to avoid before it's too late:
1. Not Shopping for Lenders
Buyers have been continuously advised to shop for lenders before ultimately handing over a mortgage application to one. The reason for this is to get the best rate and terms that you can have and figure out which of the lenders can help you choose the right loan for you.
2. Waiting for the Rate to Hit its Lowest
It's pretty understandable that some people are still hoping to see the mortgage rates go lower than it is today; however, no one can predict when the rates will go up and when it will go down. Therefore, it may be best to take advantage of the low rates now whatever the rates turn out to be in the next days, weeks or months.
3. Choosing a Loan that Does Not Fit Your Needs
According to the publication, one should choose the right loan for them depending on their plans. If you are choosing to stay at the same home for more than five years, it may be better to get a fixed-rate mortgage than get an adjustable-rate mortgage (ARM), whose rates vary depending on market conditions.
