Some Mistakes in Submitting Mortgage

MortgageWant to submit a mortgage? If you do, well, this is for you. Before you go to the bank, you better read some points below to avoid you from some common mistakes.

  1. Most people submit the loan only for one bank. And when it refuses him, he is hopeless. Don’t do that. It’s good to prepare some alternatives, so when one bank refuses you, there’s still hope that you can wait for. This also can show that you seriously want to loan the credit fast. And if many banks say yes to your submission, it’s even better, because you can choose which one does suit you.
  2. Most people submit the credit with low value and short-time installment payment because they don’t want to have credit. If you calculate and compare this value: 100 million in five years and 100 million in 15 years, the second will benefits you because of the time of return is longer while the property value increases due to the inflation.
  3. Usually, people submit the credit to the bank when they have no money. You must know, most banks only give the credit for those who have much money. One dominant condition in submitting credit to the bank is cash flow. If you don’t have money, bank will consider your cash flow run worst. Or maybe your financial management is not good so your saving record is not productive. Then bank will make assumption that you can’t pay the installment payment well.
  4. Some people save their money after their income is cut by expenses. This is totally wrong, because bank sees our income every month and not our expenses. By doing this way, you decrease bank judgment about your cash flow.
  5. Most people think that buy in cash is better than credit by saving first. When your saving amount is enough to buy a property, its price will increase and you still can’t buy it. Unless you save it as gold.
  6. Most people think that bank is an enemy, not a partner. Sometimes we have to separate the paradigm between economy and conscience if you want to be success as property investor.
  7. Most people think that to get loan from bank you must have connection. If you don’t, this pattern will frighten you so you’ll try to buy in cash.

Avoid these common mistakes, and you’ll be less worried. [photo from rowlettmortgagelending.com]

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