When you buy a home, you’re in it for the long haul.
But with so many lenders and loan features out on the market, finding the right home loan can be daunting. Here are some tips to help you ensure you choose the lender that delivers the rates, service and flexibility that best suits your needs.
1. Don’t Judge A Book By Its Cover
Great looking interest rates can easily win you over but there’s more to it than meets the eye. Advertised low-interest rates are designed to entice you just like the way sales rack are strategically placed in front of your favourite shop, drawing you to come window shopping. Since home loans are not created equal, you have to shop around and choose the most competitive one for your needs.
Aside from the interest rate, you need to factor in other fees and charges attached to the loan.
2. Consider Your Service Requirements
While some customers have simple requirements from their lender, others needs may be more complex. If you belong to the latter and want straightforward requirements such as basic updates on your loan progress, little need for face-to-face service and email updates, then a no-frills lender may easily fit the bill where you get fewer features in exchange for a cheaper loan. But if you’re with the former group then it’s probably better to go with a lender that can meet your particular demands for a slightly higher price.
3. Consider Your Timeframe
Since the real estate market can move quickly, it can be frustrating to see that dream property you’ve been eyeing slip through your fingers before your finances are in place. So, be precisely clear with your lender about what your timeframe. Securing a pre-approved finance is a smart strategy so you won’t have to settle for something that you don’t really want just because you need funds quickly and your preferred lender couldn’t finalise the loan for you.
4. Don’t Be Afraid To Ask For Help
It doesn’t hurt to ask for help, especially if you don’t exactly know which loan features suit your needs. Allow your lender or mortgage broker to help match you to the best loan that’s right for your circumstances. Mortgage brokers deal with lending on a day-to-day basis, so they know the tricks of the trade that can make or break your loan application.
They can also help you with the paperwork which allows you to have more time to focus on the fun parts of home buying.