When shopping for a mortgage, it’s important to follow the right path. Don’t get suckered in by promises of zero down payment, temporarily low interest rates, and no credit checks. Programs like this certainly exist, but will usually end up taking advantage of the buyer. You might save some money now, but you will end up paying through the nose in the long run. Read this article by Mark Riddix at Yahoo Real Estate for more mortgage mistakes to avoid:
-Adjustable Rate Mortgages- offer low interest rates up front, then raises them after a few years. It works, but only if the housing market is in full swing. If your home doesn’t build you any equity, it can quickly become a nightmare.
-No Down Payment- borrowers who make a down payment are more likely to make sure they don’t lose their investment.
-Liar Loans- these are loans that require little to no documentation
-Reverse Mortgages- there are high upfront costs, and the owner loses ownership of their home.