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Zhi Finance » Mortgage advice for residential real estate

Mortgage advice for residential real estate

When it comes to owning property, many people around the world will tell you that it is their lifelong dream. While it was once an opportunity reserved for the wealthiest or the stingiest, homeownership is now something that is available to more people than ever before.

That’s good news for many, but for some it can lead to messy relationships with mortgage brokers and serious loan sharks. The best advice anyone can give to someone trying to embrace the dream of real estate ownership is to deal with a reputable company when it comes to obtaining a mortgage. Even when dealing with a reputable lending company, you must be aware of those who do not have your best interests at heart.

If you want some very practical advice on getting a mortgage, then you’ve come to the right place. First of all, avoid lenders who encourage you to take out a loan that exceeds your ability to repay. Foreclosures in the mortgage industry are currently at an all-time high due to the predatory lending practices of some mortgage brokers. These practices include convincing people to borrow more money than they can realistically hope to pay over time and have any quality of life, as well as convincing homebuyers to take out adjustable rate mortgages at the beginning to get a lower interest rate.

Shop around before you decide to buy a mortgage. This doesn’t mean applying for mortgages all over town, but rather researching and comparing rates before applying with any one company. Talk to several different brokers to find out what they can offer you that other companies down the road can’t or won’t. Remember, mortgage companies will offer everything under the sun, from a free toaster to a free vacation, in order to get you to work with their company. The proof, however, is in the terms. If you end up paying a 6.9% interest rate instead of 5.9%, then the free toaster is simply not worth it. You will pay many times over for this toaster in the process of paying your mortgage.

Even after you apply for a mortgage, if the deal seems to be heading south, look at your other options. All sorts of problems can arise in the process. You’re not married to a mortgage broker. Nine times out of ten, you are not even making any kind of commitment to your mortgage broker. You will, however, be living in the home you choose. If there is a problem with the mortgage company for the particular home you want, do not hesitate to change in order to get the home you want for your family, rather than letting the mortgage company decide what kind of home you can buy.

I mention this because we had a very similar problem with the purchase of our turn-of-the-century home. The mortgage company decided that it was not worth the risk due to the age of the home. We saw the beauty and potential of our house and managed to get it approved and financed by another mortgage company in a very short period of time. If that was the case for us, it is likely to be the case for others as well.

Honestly, in this day and age, it is almost impossible to buy a home without a mortgage. However, it is best to look at the process as a learning experience rather than a mean lesson in intimidation. It is your house and your money will be used to purchase it. You are asking them for a loan, but frankly, they need your business. Don’t hesitate to shop around for the best mortgage deal, just like you did when you were looking for a house.