Buying a home is a very big and important decision in life but this decision can’t be taken suddenly one fine day. One needs to plan a lot for buying a home even if it is to be financed by a bank because no financial institution ever finances 100% of the amount needed for buying a home. Hence one needs to plan a bit early and start saving for the down payment that needs to be done upfront while going for the purchase of a new home. Even after having money for making the initial payment, there is a long and complex procedure for getting the right home and the best suited home loan. Therefore it is always advisable to take the services of an accredited mortgage advisor for the procedure.
- Take Lesser Loan than your Eligibility
It would normally be the case that the person would qualify for more loan than is needed. This sometimes tempts the borrower to go for higher borrowing and spend on a bigger house than required. Such a temptation should be avoided at all costs because it is going to land you in problems sooner than expected. Take the least possible loan so that it is easy to repay.
- Whether to Buy or Rent
There is always a right time to do certain things in life and a big decision should be taken at such appropriate time when you are actually ready to take the load of mortgage. If you feel that some more time is needed to go for the plunge, renting is a better option till the time you can build-up sufficient capital to pay for your initial investment as well as other liabilities.
- Explore different Mortgage Options
There are different options available with different financial institutions for the first time home buyers. Instead of getting lost into this maze and just picking up any home loans Australia, one should do the ground work and choose the best option as per requirement.
- Adjustable Rate Mortgage
The buyer can get the benefit of lower interest rates and lower monthly payments in case he decides to buy down the interest rate by making an upfront payment against the interest. But this would be beneficial only if the buyer intends to stay in the new home for a longer period and also has good cash liquidity.
- Pre-approval Helps
Having a pre-approved mortgage is always helpful because it reflects the seriousness of the buyer and hence one can get faster and better deals in the market.
- Arrange for Down Payment
No bank would finance complete cost of the home to be bought and hence a down payment by the buyer is a must. Larger the down payment lesser is the interest rates.
- Keep the Documents Ready
A lot of paperwork is required for creating a mortgage hence it is very useful to take the help of an accredited & experienced mortgage broker on your side.
- Close the Deal
Complete the mortgage and own your dream home.