Home Loans 101: Things to Know Before Lodging Your Applications
Applying for any type of home loan can be exhausting if not done properly. However, you don’t necessarily have to go through the unnecessary stress by following some of the proven, yet simple strategies we’ve seen to have worked over the years.
The earlier phase of your application can make or break your success and can largely affect this significant commitment you are about to undertake.
Why should I be working with a home loan professional?
If you want to have more options, in as much as interest rates are concerned, working with a home loan broker can be very helpful.
Instead of just getting one interest rate to choose from, if you decide to work with a home loan specialist, you can get several options from different lenders--giving you the opportunity to choose which loan product best fits your needs.
Things you need to know
Upon signing a mortgage offer, make sure to check its features and fees as this can cost you money when you’ve finally paid off your mortgage or decide to pay in advance or change lenders.
Paying your mortgages on time is not only important as it is your obligation to your lender. Paying late and below the required amount can badly hurt your credit score, and ultimately might hinder your chance of getting a loan in the future.
Applicable fees
To avoid getting shocked once your application has been approved and you’re already paying your loan, you need to know the fineprints of your loan agreement. It is imperative that you know that you are getting yourself into as far as applicable fees are concerned.
ALSO READ: Owner Builder Loans 2021: Things to Expect After Lodging Your Application
Exit fees are fees paid to your lender if you’ve paid off your mortgage or switch to another lender, early repayment fees are fees paid when you pay off your mortgage within the tie-in period.
Family Guarantees
Lenders usually allow a guarantor when your children or close relatives buy a property for the first time or after selling the first one.
This loan type is ideal both for first home buyers and those who want to sell their first house and buy a new one.
Lenders will let you borrow for up to 80% of the loan value and the remaining 20% will be secured as a second mortgage in your parents’ or guarantor’s property.
The guarantors (usually mom and pops) only need to guarantee the 20% of the loan amount.
Darin Hindmarsh is the founder and CEO of Intellichoice Finance, a broking firm based in Brisbane, where he specialises in owner builder loans. He's been providing financial and broking services in the past 18 years. Hindmarsh is also finalist in the 2020 Australian Mortgage Awards - Pepper Money Broker of the Year – Specialist Lending. To jumpstart your home loan application, visit their home loan online application page today. Like and follow them on their Twitter and Facebook accounts.
The earlier phase of your application can make or break your success and can largely affect this significant commitment you are about to undertake.
Why should I be working with a home loan professional?
If you want to have more options, in as much as interest rates are concerned, working with a home loan broker can be very helpful.
Instead of just getting one interest rate to choose from, if you decide to work with a home loan specialist, you can get several options from different lenders--giving you the opportunity to choose which loan product best fits your needs.
Things you need to know
Upon signing a mortgage offer, make sure to check its features and fees as this can cost you money when you’ve finally paid off your mortgage or decide to pay in advance or change lenders.
Paying your mortgages on time is not only important as it is your obligation to your lender. Paying late and below the required amount can badly hurt your credit score, and ultimately might hinder your chance of getting a loan in the future.
Applicable fees
To avoid getting shocked once your application has been approved and you’re already paying your loan, you need to know the fineprints of your loan agreement. It is imperative that you know that you are getting yourself into as far as applicable fees are concerned.
ALSO READ: Owner Builder Loans 2021: Things to Expect After Lodging Your Application
Exit fees are fees paid to your lender if you’ve paid off your mortgage or switch to another lender, early repayment fees are fees paid when you pay off your mortgage within the tie-in period.
Family Guarantees
Lenders usually allow a guarantor when your children or close relatives buy a property for the first time or after selling the first one.
This loan type is ideal both for first home buyers and those who want to sell their first house and buy a new one.
Lenders will let you borrow for up to 80% of the loan value and the remaining 20% will be secured as a second mortgage in your parents’ or guarantor’s property.
The guarantors (usually mom and pops) only need to guarantee the 20% of the loan amount.
Darin Hindmarsh is the founder and CEO of Intellichoice Finance, a broking firm based in Brisbane, where he specialises in owner builder loans. He's been providing financial and broking services in the past 18 years. Hindmarsh is also finalist in the 2020 Australian Mortgage Awards - Pepper Money Broker of the Year – Specialist Lending. To jumpstart your home loan application, visit their home loan online application page today. Like and follow them on their Twitter and Facebook accounts.
