You need to be very careful when looking for a home to buy and this mostly apply to those who are looking for a home for the first time. Research is very important for you when looking doe a new home since it assists you to know which house is better than the other. Mortgage brokers are very important in this case because they are the ones who can enable you to get the best home where you can settle with your family. Here are the seven lending mortgage insurance mistakes to avoid when buying a home.
- You should know what you want to purchase
Sometimes we tend to confuse between lending mortgage insurance and mortgage protection insurance. It is very important for you to know the difference so that it can be easy for you to know what you are purchasing and whether you are protected by an insurance company. Mortgage protection or income protection is very important as it makes it easy for you to pay for the mortgage loan that you have when you are sick or when you have died.
- When you don’t know the options available for you
It is important for you to know all the lending mortgage insurance options available on the market so that it can be easy for you to know what to do and what to avoid. When you are not aware of your options it may be hard for you to consider them in the right way. As a first time buyer ensure that you don’t overlook looking for a security guarantor for the mortgage loan that you will be taking.
- Forgetting the premiums
Never forget the premiums when going for the mortgage loan and never forget to pay your loan upfront. Forgetting your extra cash is not good because it will assist you to know the amount of mortgage loan that you will get. When you are depositing money or any fees ensure you don’t forget the premiums.
- When you think that you are protected by the LMI
Insurance is there to protect you in unforeseen circumstances like life, death and property. When you pay premiums to an insurance company, the company is the one that pays a certain sum of money in case an incident occurs and this money should cover the damage. The insurance is the one that is supposed to take care of any situation that may occur or remedy the situation.
- Getting unnecessary LMI
When looking for a mortgage loan, ensure that you don’t borrow more than the money you need because paying the money maybe a problem. It is in order for you to purchase the LMI only when your down payment is 20 percent or less. Mortgage brokers Melbourne plays a very crucial role in assisting home buyers to know the best lending mortgage insurance to purchase.
- Not knowing if the premium is refundable or not
This lending mortgage insurance mistake that we make when purchasing the LMI and it is important for you to know whether your premium will be refunded or it will not. This depends on the type of insurer or lender that you have. For you to be refunded your property must be re-evaluated.
- When you assume that your LMI will not change when you refinance
There are exceptions when your LMI will not change when you refinance but it is important for you to know that when you refinance your LMI must change. For more details and information visit www.mortgagebroker247.com.au
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