4 Top Tips to Getting the Best Loan
1. Shop your home loan first
So you have found the house you love, your dream home or an investment that you think will kick-start your property portfolio, but what if you cannot afford to pay the mortgage repayments? You do not want to be disappointed if you receive the rejection letter from the bank! Shop for your home loan first, before you make a commitment to buying a house. Mortgage brokers can assess your situation, help you to create a realistic budget, and give you a price range to stick to when buying your property of choice.
2. Look beyond the top 4
Currently, there are hundreds of lenders in the market, so much so it can be overwhelming to find a lender that you can trust. The advantage in using a Mortgage Broker is they can peruse the different products, steer the approval process and find the best deal to suit your circumstances.
Don’t be fooled, beware of the big lenders who are offering tricks and honeymoon gifts, the cheapest deal is not always the best. Choosing the loan that has features to suit your individual needs is what is important. You need to think long-term and you want to make sure the loan is working for your circumstances.
3. Stability and Mortgage Insurance
Demonstrating to the lender that you can live within your means and you have a stable income will certainly be in your favour. If you are buying your first home, you will want to show that your bank accounts are in order, your credit check is healthy and you saved a deposit.
The more deposit you have, the less you have to borrow – the more equity you have in the property, the less chance you will have to pay Mortgage Insurance. Mortgage insurance can generally be avoided if you can provide a 20% deposit of the property value.
4. Stay informed and plan for the future
A great lender should not stop at the offer of a home loan; they should be helping you secure financial stability for the future. By using a mortgage broker, you are hiring a personal concierge that will be with you, should you need help, through the life of the product. Speak to your broker about home loan packages that include things like line of credit, offset accounts, insurance products or professional packages.
Further to that, Liberum Financial can offer Financial Planning services as now is the time to think about things like life insurance, income protection and trauma insurance for further security of your future