Is your new year’s resolution to enter the property market? Buying a home is a big financial decision, and a key factor will be your home loan. To help you on your journey, here are four things you need to know about mortgages.
1. Pre-approvals can be powerful
A pre-approval is the first step in the home loan application process. It’s an indication from a lender that they’ll lend you money to buy a home, and it tells you how much you can borrow. A pre-approval helps you narrow your search to properties in your budget and shows real estate agents and sellers that you’re a serious buyer. Tip: not all pre-approvals are created equal. Contact us to understand more.
2. Give yourself time to maximise your options
Just as you would shop around for a new appliance before buying one, give yourself time to look at different home loans. Key things to look at are loan types, interest rates, fees, and features such as offset accounts. Using our services is the most efficient way to maximise your options, as it’s our job to take the guesswork out of the process by comparing different home loans to find the right one for you.
3. Banks have tightened up their lending criteria
Lenders recently tightened their lending criteria by increasing debt-to-income requirements. It’s reduced how much a person can borrow, potentially making it harder for aspiring buyers to get a home loan. However, each lender assesses loans differently, so it’s worth speaking with us to understand where you’ve got the best shot at being approved, and which lender will give you the best outcome.
4. You don’t have to be a customer for life
Staying with the same lender can cost you in the long run. So it’s a good idea to review your home loan once every year to check that you’re still on the right product and the lowest rate. Switching to a better deal can save you thousands of dollars in interest and help you pay your loan off faster.
Finding the right home loan can be daunting, unless you’ve got us in your corner. We’ll compare mortgages from our panel of lenders to find one that suits your needs. Best of all, we’ll take care of the application process on your behalf. Give us a call today.