When you start shopping for a car, you might be more concerned with additional features and specialty paint jobs than you are about the monthly bill. Unfortunately, the wrong financing can cost you dearly. Compound interest never sleeps, which means that you might be paying much more than you should if you work with the wrong lender. I want to help you to make great financial decisions, which is why I created this website. However, if you can remember a few tricks and keep those payments to a minimum, you can drive away with the car of your dreams without breaking the bank.
If you want to own a home, it's important for you to do your research and learn as much as you can about mortgage loans. It's also important that you don't make any inaccurate assumptions about mortgage loans.
The following are six inaccurate assumptions consumers sometimes make about mortgages.
Consumers can definitely be approved for a mortgage if they've been pre-approved.
Unfortunately, being pre-approved for a mortgage loan doesn't necessary guarantee you that you'll actually be able to take out a mortgage loan.
You'll have to undergo a hard credit check inquiry after being pre-approved. Not all pre-approved consumers will have good enough credit to be approved after undergoing a full credit check.
Consumers have to pay penalties for paying off their mortgage early.
Although some mortgage lenders may charge a penalty when a borrower pays off a loan early, this doesn't necessarily happen with all mortgage loans.
If you want to have the flexibility to pay off your mortgage loan early, make sure you specifically choose a mortgage loan that doesn't entail any early payment penalties.
Consumers have to have flawless credit to be approved for a mortgage.
A lot of consumers who could be homeowners don't even try to get approved for a mortgage because they assume they must have flawless credit. In fact, it's possible to get approved for a mortgage loan even if you have bad credit as long as you're persistent and resourceful.
Consumers need to put down a lot of money to be approved for a mortgage.
You don't necessarily have to put down more money than you have in your savings in order to take out a mortgage loan. In fact, mortgage loans are sometimes even available for no money down.
Consumers should try to pay off their mortgage loan as soon as they can.
While being debt-free is obviously a goal of any consumer, that doesn't necessarily mean you should pay off your mortgage loan as quickly as possible. In some cases, it might be better to put your funds toward another debt rather than toward your mortgage loan.
Consumers should always choose the mortgage loan with the lowest interest rate.
There are numerous factors that borrowers should evaluate when choosing a mortgage loan. While the interest rate is a key factor, it's not the only factor that's important.
Other factors to consider include the length of the loan and the added fees that must be paid as part of the loan agreement such as an origination fee or late payment fees.
For more information, contact a mortgage company like Fairway PNW.
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