BUYING a property will ultimately be one of the biggest investments that many of us will make in our lifetime - so finding the right home loan for your needs certainly isn't something that should be taken lightly.
Do your finances a favour by undertaking the necessary research involved with acquiring the right home loan for your needs.
Whether you have had your loan for years and are considering refinancing or taking out an additional loan, or you are a first time buyer doing your initial research, forward planning may greatly improve the quality of your property ownership journey.
Starting out with forethought about the features you are likely to want in the years to come can save a great deal of time and hassle.
Here are a few things to consider when searching for the right home loan.
Pre-approval on your loan prior to signing a contract can give you peace of mind that you are likely to be approved for the loan and provides a good indication of the limit on what you're able to borrow.
Pre-approval may also improve your ability to negotiate, offer shorter finance and settlement clauses and help you to avoid any issues, as they can be sorted out before the clock is ticking.
Even if you have your finance pre-approved, it's a good idea to sign contracts with a finance clause and a building and pest inspection clause.
This will help to ensure you have time to finalise your loan approval and get the pest and building inspection done before you are locked into a purchase contract.
While you may have a long-term relationship with your current lender, it is a great idea to consider your options from a wide range of lenders - you might be missing out on a 'cheaper', better suited loan product.
Most lenders offer different rates depending on your borrowing amount and the size of your deposit or equity that you have.
Your lender can only offer you their best deal, but the same deal at another lender may have a rate that is cheaper.
You can do the leg work yourself or a mortgage broker can do it for you by researching and comparing your loan options to find one that is most suited to your needs and goals.
Interest rate isn't everything
When hunting for a home loan, it is vital to remember that it's not all about the interest rate.
A loan's features, fees and flexibility will have an effect on how much you will pay in overall interest and how long it could take to repay the loan.
As a rule of thumb, only pay for what you need - knowing what features you need, now and in the future, can ultimately save you a lot of money in the long run.
For more information phone Richard Windeyer on 1800 01 LOAN.