The Vital Checklist for First Home Buyers
Purchasing a house has lifelong implications; in this light, one’s approach to this should be nothing but thorough, well-informed and cautious. There are certain things that a first home buyer should be aware of before taking a decision.
If you’re planning on buying a house, you should be familiar with the most crucial aspects related to the process itself, as well as the consequences of that process. We’ll take a quick look at these and pair them up with brief, but clear explanations.
The Big 4
- Be Aware Of Credit Score
In the eventuality in which you want to buy a house through a mortgage, you shouldn’t even think about applying before you’ve consider how your credit rating may look. This is the very first thing many lenders look at.
If it’s low, or if you have multiple enquiries on your credit file, you should do everything you can to tidy things up first. Many people get disappointed when their applications are rejected due to their low credit scores. A good mortgage broker can help you understand how your score may look prior to an application, help with tips to repair it, and even track down lenders that don’t rely on credit score!
- Shop Around for a Mortgage Broker
A mortgage broker could point you toward a lender that has the exact deal you were looking for. What’s more, they’ll be able to tell you what mortgage you may be able afford and whether you qualify for it or not. They will also inform you about the interest rate (variable rate or fixed rate) and term you should pursue (in line with your income, of course).
A mortgage brokers advice can be invaluable, as it can make your life as a borrower a lot easier by keeping you safe from the various pitfalls that exist in the banking industry.
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- Muster up the Money for a Deposit
Bigger deposits can lead to lower rates, and lower fees. In many cases, this sum represents anywhere from 2%, up to 20% or more of the value of the house one wants to buy, so they amount could be small, or substantial – it’s great to have a chat with a mortgage broker to understand the different lenders deposit requirements so you can be prepared. We suggested have a chat well ahead of time so you can plan ahead!
- Don’t Go with the First Offer
Shopping around for a great deal on your home loan is highly recommended; by jumping headfirst into the very first offer you get, you might miss out on opportunities you should have seized instead. Your mortgage broker will give you the same piece of advice – and do the shopping around for you!
Compare offers and go with the one that both you and your mortgage broker agree upon.
A home loan is a really big deal, so you shouldn’t leave any room for mistakes.
The Bottom Line
Apart from these 4 pieces of advice, there are many pieces of the puzzle that your mortgage broker will guide you through. Of course, it goes without saying that you should not quit or change your job when shopping for a home loan.
Buying a home is a huge step in your life, and one certainly does not want that step to be the wrong one. Get in touch for a chat and good luck!