The Three Biggest Mistakes You Can Make When Searching for a Mortgage

Acquiring financing is often the most intimidating and daunting aspect of buying a home. This is very a crucial step that should not be taken lightly as it will affect your financial history now and in the future. To ensure that you are getting off to a positive start, here are some mistakes to avoid when searching for a mortgage loan:

Mistake #1: Not Asking for a Lower Rate

Too often, borrowers assume that interest rates are set in stone with the lender – but this is not always the case. If you are looking to borrow money from a particular lender, you have the right and the obligation to ask if they can give you a lower rate than what they originally quoted you. If successful, this tactic can result in a lower annual percentage rate and significant savings in the long run. There are a variety of comparison tools online that can help you compare mortgage rates from lender to lender.

Mistake #2: Not Using a Lawyer

Not consulting a real estate lawyer to look over your mortgage documents when obtaining financing is another crucial mistake that might cause trouble in the future. Mortgage documents are both complex and lengthy and as a result it is often necessary for a lawyer to review the documents and offer legal advice. A knowledgeable attorney will also be able to explain any areas you are unclear about in the financial agreements and/or closing documents. Buying a home is a major investment as is taking out a mortgage so paying an attorney to look after your interests is well worth the cost.

Mistake #3: Not Checking Your Credit History

Before you even begin to look for a mortgage loan, you definitely want to look into your credit history, if you haven’t already done so. Because lenders are going to offer you mortgage rates that are in relation to your credit history, knowing how you rate can help you determine if they're offering you the best rate for your financial status. If not, you can move on to someone who will.

Also, when you are obtaining a loan, you need to be absolutely sure that you understand what you are getting into. The main problem concerning many of the borrowers forced into foreclosure as a result of the recent mortgage crisis lied in the fact that they did not understand how their mortgages worked and they subsequently became too expensive for them. Do not let this happen to you.

Using your payroll debit card

According to American Payroll Association, only three percent of the total population is using their payroll debit cards, presently known as the Pay cards. In future, maybe 22000 members, half of the association members, are thinking of using these types of cards in their payroll system sometime in the future. Although, there are many banks who offer these kinds of services, but there are still many more who are not aware of these cards. Employers who are keen in using these kinds of services of paying wages to their staff can learn more and implement it in their system.

US is considered to be one of the most technologically advanced countries but there are still many companies who still write a number of checks to pay wages to their staff every pay period. Those companies who have been implemented the use of Pay cards have got satisfactory results with the new bank service.

One of the benefits of using payroll debit cards for employers is a drastic decline in payroll processing costs. It hardly costs 20 cents per transaction while loading a pay card. Paper checks are more expensive and can cost up to $2. There are many companies that employ part time workers who do not have a bank account and these pay cards will sound to be very helpful in their cases. Recent statistics say that almost 17% of the total working US population does not have an active checking or a savings account. A debit card payroll system can help growing businesses in managing their payroll electronically.

There are many benefits of using a payroll debit card. Employers do not have to pay any fees to check cashing shops when the staff wants to encash their salaries. Some of these check cashing places may charge 10% for every pay check that they cash in. Besides, carrying card is always safer than carrying hard cash. Pay cards can also be used as debit or credit cards. So online transactions can be done very easily and pay monthly utility bills and make other purchases online. Using these pay cards can be a very happy experience for both the employer as well as the employee.