Errors that make inexperienced borrowers

23.01.2011 14:15
Preparing for a mortgage - a fairly lengthy process. And, apparently, for this time much can be reviewed and understood. However, there are three mistakes that inexperienced borrowers make most often.

1. Reassessment of own forces

Many of those who first bought the house, make the mistake of vzvalivaya on too large loan. They believe that future income will increase or hoping to get an inheritance. But do not forget that we assume a life of its disposal, and circumstances may not change for the better for your side. And maybe now you think this expensive house or apartment is absolutely necessary. But be prepared to ensure that the more expensive house or apartment, the more maintenance costs. And if until now you only rented housing, it is unlikely that both should imagine the amount of those costs. For example, do not forget that you have to pay an annual property tax and insurance housing. In addition, it is better to buy a first apartment is cheaper, and increase revenues, to sell it than to hang over the unpaid loan and lose the only housing.

2. Undermining of credit history
One of the most common mistake - thinking that you get a loan, even if your first loan that something went wrong. In the U.S. you can get a report of their credit every 12 months using the site AnnualCreditReport.com. In Russia, you are required to monitor their credit history. And it will be naive to assume that if you have problems with repayment of the loan at one bank or the other without getting caught. In practice, banks have long been exchanging information about borrowers, and this should be taken into account. Check in advance whether all the accounts you closed that you have not use - it can also accumulate debts with no evidence of you well. If you took out a loan and are encountering problems with his maturity, analyze the causes of these problems and think about how you can avoid them this time. In any case, a successful credit history - a pledge of lower interest rates and this should be remembered.

3. The lack of clear spending plan

This mistake often made by inexperienced borrowers, as well as a reassessment of their own forces. Not all banks explained their clients in detail the process of buying an apartment and advance warning about the additional expenditures. That is why all sorts of commissions are a surprise to those borrowers who are ashamed to find out exactly all the costs of the loan. So, in addition to credit funds to buy an apartment, you must have additional funds to pay for work appraiser, realtor, the insurer's payment of registration taxes, notary and other expenses.

Before agreeing to sign the contract with the bank, make sure you've accounted for all expenses and if necessary, increase the amount of borrowed funds, so that you are not faced with financial problems even before buying the apartment.

Do not forget that you also need money to move, perhaps to some minor repairs, or maintenance of a house or apartment. Also after the move, normally require new furniture and other belongings in the apartment. All this is unlikely to fill up your account quickly spoil them thoroughly.

Even if you do not first buy a property, do not forget about all the spending, referring to the bank for a loan.

Thus, the rule of three:

time - check your credit history;

two - do not overestimate your strength;

three - please check with the bank all of the additional costs that you have to.
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