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Today I am going to talk about 5 common mortgage mistakes First Time Buyers make. Getting a mortgage these days in Ireland is difficult and so it is really important to get some information about the do’s and don’t’s.

I have been in the mortgage business for a good few years now and I have seen many First Time Buyers (who have not taken my advice) make some or all of the following mistakes

1. Applying direct to your bank, Big Mistake with a capital B!

If there is one thing the last few years has taught us all it is that you just cannot trust Banks. And I am not just talking about Irish Banks but all banks, Dutch, Belgian, Spanish, German, Cuban. Banks are banks and simply cannot be trusted. Banks exist to make profit and for no other reason.

It can seem convenient to go direct to your bank branch when you need a mortgage approval. However this is a big mistake. Local Bank Branch Advisers, no matter how friendly they may seem, all take their instructions from head office. They do not have your best interest at heart.

Your application might be declined for the smallest reason. Once your application has been declined then there is no going back. You will be forever on record as having been declined. This could make it hard to get approved in the future. A good mortgage broker will assess your application and iron out any issues before your application is formally submitted for approval.

Things can of course still go wrong when you apply through a mortgage broker, however you will have a much better chance of getting what you need. And if at first you don’t succeed a good Mortgage Broker will stick with you and plan ahead for your next and hopefully more successful application while your local bank branch will cast you aside.

2. Not planning ahead

Planning ahead is vital before jumping in and applying for a mortgage. You need to make sure you have access to a 10% deposit and you also need to plan for legal expenses and moving in costs. There is plenty of help and advice available.

Talk to a mortgage broker to seek advice as early as possible so that you will be ready when the time comes. The MortgageLine First time Buyers Guide will give you an indication of what you need to do to get ready. However there is no substitute for speaking with a mortgage adviser who will give you advice on your own personal situation but make sure you seek Independent Mortgage Advice.

3. Taking basic life cover

Your mortgage is probably going to be your biggest outgoing for many years to come and so it is important to make sure you have the right protection. It is necessary to take out basic life cover but you should also consider Serious Illness Cover, Income Protection and Mortgage Payment Protection.

Everyone is different and so there is no one size fits all when it comes to protection but it is important to consider all of your options. A good Mortgage Broker will talk you through your different protection options and make sure you get a level of protection that you are happy with.

4. Not getting the best possible rate

Getting the best possible deal is crucial and so its important to shop around when it comes to mortgages and insurance. When it comes to Mortgages you should make sure you speak to a Broker who has access to at least 5 Mortgage Lenders.

Looking at best rate tables of mortgage rates is in most cases irrelevant. First you need to establish which mortgage lenders will give you what you need and then which of them has the best rates. It is important to get the best value but there is no point pining over a rate that you do not qualify for.

5. Not getting the best value Insurance

When it comes to insurance like Home Insurance it is important to get the best value cover which is not always the cheapest cover. Some low cost brokers for example will offer you cheap deals but when you look at the small print you may find that you do not have the cover you would expect.

Things like accidental damage cover would normally come as standard with Home Insurance, however some cheap deals exclude accidental damage to keep the cost low. Be careful and check out whats covered and whats not.

If you have any questions on getting a mortgage then please do not hesitate to contact the team here at MortgageLine.