Kevin Chang Sheng Long Releases Listings of Quality Homes

(Newswire.net — November 29, 2017) Huntington Beach, CA –Mortgages are among the largest debts one will carry, and a house is one of the most expensive purchases one will ever make. This is why it is important to take all aspects of the mortgage into consideration. A single mistake could cause anyone to pay more than necessary or prevent the loan from closing. Kevin Chang Sheng Long, a nationally acclaimed business professional with over 25 years of experience in the financial and real estate fields, discusses the five common mistakes that people should avoid when purchasing a home.

One of the most common mistakes one can make when purchasing a new home is not locking the interest on the mortgage or choosing an ARM (Adjustable Rate Mortgage). An ARM typically offers a low payment, which tempts borrowers to choose it over higher-priced fixed-rate loans. However, failing to lock the interest in the initial stage could cause it to go up in the future. Once this happens, the borrower may not be able to afford the new payment anymore. Mortgages usually remain cheap, so if a borrower takes out a fixed-rate loan, they might not have to worry about refinancing.

Not estimating the actual budget and ignoring the true costs of the mortgage is a serious mistake when going out to buy a property. The sale price that the borrower agreed to pay for is not necessarily the true cost of owning the property. Kevin strongly advises that borrowers get pre-qualified before jumping into the market and carefully study the mortgage amortization schedule to see how much the borrower will pay in total, including the total amount of principal cost and interest. The cost of a home could increase dramatically over the years due to the interest rate. Borrowers should also take all the other things that homeownership entails, including property taxes, homeowners insurance and mortgage insurance.

Another common mortgage mistake according to Kevin is missing bill payments. He says that borrowers should pay the bills the moment they are generated to avoid discrepancies in the future. Doing this has another benefit—it can lead to a higher credit score.

Kevin also cited increasing debt as one of the most common mortgage mistakes. Increasing the debt level can mean increasing the risk level, which means that if the borrower has a lot of debt, they may not be able to borrow that much money. Kevin recommends borrowers to keep a hold on new purchases while applying for a loan to increase their chances of being approved. Borrowers should avoid opening new credit cards and taking out new loans.

Leaving one job and getting another is the fifth common mortgage mistake that Kevin discussed. Lenders usually only finance borrowers with two years of consistent employment. In addition, changing employers can also delay the settle process since lenders will still have to verify the borrower’s employment and salary.