Top Mortgage Mistakes

Top Mortgage Mistakes

Top Mortgage Mistakes

When compared to other investments that you make in your lifetime, few will be as expensive as property. Due to the price tag, you may need to secure a loan to cover some of the cost. To help you have a smooth mortgage process, the team at Sapphire Capital Investment, a leading property investment company in Tucson has compiled the following tips.

No down payment

If you have some experience in property, you will find some mortgage products that allow you to purchase a home without any down payments. While it looks like a fantastic opportunity, we highly recommend against it.

Down payment increases the equity that you have in the property and reduces the amount of debt. In addition, it pushes property owners (acts as an incentive) for them to complete mortgage repayments on time since they don’t want to lose what they have invested already.

Only approaching one lender

Many potential property owners make the mistake of only relying on one lender for mortgaging services. Applying with different lenders allows you to consider the different requirements and terms offered to you. By doing so, you are looking for the best offer that can meet your unique situation.

Some of the mortgage terms/ requirements to consider include the mortgage rate, type of mortgage rate, length and amount of repayment, and additional costs (lawyers, transfer, home appraisal etc.).

Pre-qualification vs. Pre-approval

From our experience in the Tucson property market, this has often been an issue that our team has had to advise on. The two terms, pre-approval and pre-qualification are not synonymous terms.

Pre-qualification is an indicator of the ability to approval. When a lender pre-qualifies you, they will give you the maximum loan amount that they can lend you. It is usually on the assumption that all financial information provided is true.

The pre-approval process includes comprehensive checks into all documentation provided to the lender by the borrower. They perform background checks as well as finance and credit checks. Once complete, you will be fashioned with a pre-approval letter.

Not using a local property adviser

One of the characteristics of property that you should appreciate is that of its localized knowledge. Each property market is different due to a number of factors. Some of the include taxation, amenities in the neighborhood, regional economics and appreciation rates. All this must be considered before making a decision when it comes to property.

Selecting an experienced local property company is advisable as they have the experience and localized knowledge to help you make the right decisions.

Not locking down your mortgage

During the comparison of the different mortgage lenders, you will be presented with a quoted rate. It however means very little unless the rate is ‘locked’ in. By locking it in, you are assured of a specific interest rate, including other mortgage terms.

By requesting for a mortgage lock rate, lenders will request that you show your commitment to the loan. You may be asked to make a deposit.


There is no company better positioned in Tucson to offer property investment advice than Sapphire Capital Investment. We have the experience, industry knowledge and professional team to help you make the best choice. With us as you property partner, the purchase or sale process will be smooth and without any hiccups.

Reach out today and inquire on any of our services.


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