The Most Common Mistakes to Avoid When Applying For Mortgage Loans.

Remember That The Loan Is “Secured” On The Borrower’s Property.

mortgage-loansAlso referred as mortgages, mortgage loans are used by buyers of real property to raise funds to buy real estate; by existing property owners to raise funds for any purpose though putting a lien on the property being mortgaged. The loan is “secured” on the borrower’s property.


  1. Request mortgage loans for A and use it to B.

Some people get a loan to finance your business, but use part of the amount they receive to build (or buy) your home for fear to reject them a mortgage. That is a bad idea.

The real estate credit, or infrastructure, is very different from working capital. It is cheaper because the product you’re going to see, unlike the merchandise is unstable.

They charge a rate mortgages average annual interest of 9.24 % in soles and 7.67 % in dollars. Instead, for a micro loan is paid around 32.27 % in national currency and 19.73% in foreign currency.

Resorting to credit card to finance your company is also a mistake. That is fatal because the interest rate ‘plastic’ is higher, it is among the most expensive in the world, can reach 200 % annually. No business has that level of profitability.


  1. Not Investigating.

Suppliers usually offer discounts for early payment. The proposal may be, for example, to consider debt as paid off if the customer pays 80 % of it ‘instantly‘. That is equivalent to a discount of 20 %. But beware: Not all that glitters is gold.

The firm can be considered good idea to borrow money to settle its obligation, and you can even encourage ask for more merchandise. But this will not be profitable if the demand for the products is not as high as expected and much of the stock is spoiled.

With the abundance of goods, supplies and services offered today, you should not buy more. There is a queue of suppliers behind you.


  1. Escape.

Some people who leave to go into default, shame or to “be living “with the financial institution. This attitude is not recommended if you want to be the subject of new loans in the future.

Even send the son or wife to take out a new loan in place. That’s not getting out of the hole.

It is best to approach and explain the situation. If there was a problem that demanded exceptional expenditure, such as illness, that person could possibly get a debt rescheduling. Even the entity may lend to re float his business if it proved to be good payer in the past.

Are you looking for a home equity loan? Or are you trying to borrow money to buy a home? There are good and bad business. If you do not want to be tied to a bad, beware:

Be wary of “great offers” that come by phone, mail, fax or internet. Very often, these deals too good to be true are hoaxes.

Beware of contractors improvements that offer finance the work to be done at home.

If you need a loan, first go to the bank in your community.

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