Making sure your finance adds up
So you’re ready to buy a house. Congratulations! There’s just one problem, you need to pay for it. So the home loan hunt begins. There is so much to consider, so much to know and this is the most amount of money you’ll ever spend on something! We completely understand!
My best advice? Take your time and shop around.
No doubt you’ll come across loads of lenders happy to help you with your finance, but this doesn’t mean they are all right for you.
Here are some questions you can ask to help you make your mind up:
- Is my finance professional qualified?
- Do I have a budget? If so, can I sit down with a finance professional to work out a realistic repayment budget?
- Do I want to use my normal bank or a mortgage broker?
- Do I have the time and skill/knowledge to compare multiple lenders?
- Are there any fees associated with my mortgage (like early repayment etc)?
- What are the set up / establishment fees applicable?
- Are there any ongoing fees, i.e. monthly fees or annual fee?
- Can I make extra repayments without any fee?
- Can I redraw on these extra repayments and what fee is associated?
- Does my mortgage lender have a credible history in the finance market? Do they have any industry awards?
- Will I have easy access to 1. ATM network, 2. branch network 3. Internet banking, 4. phone banking?
- What loan packages are applicable to my situation, i.e. packages providing - discounted interest rate, fee free transaction accounts, applicable credit card facilities?
- What type of loan will suit me better, i.e. basic (no frills) loan, professional package, variable, fixed etc?
- What bank or lender has the appetite for my personal circumstances (i.e. some banks will do low doc loans - others won't, some will look at clients with defaults - others won't, some will take clients who are under probationary period with their work - others won't)
This may seem like a lot of work, but it will be well worth it in the long run. All this research and running around will be a distant memory once you are settled into your new home, enjoying the fruits of your labour without the stress of a tight budget and overbearing mortgage.