Just like any other form of major purchase, getting acquainted with the process and the specifics of home buying can help you save thousands of dollars.
Credit files matter
At this stage of buying your first home, getting your documents ready is everything. While it’s a general practice for lenders to check an applicant’s credit documentation, the specifics vary from one lender to another.
Typically, the process of mortgage application starts with the lender assessing the applicant’s credit file against its own standards. At this time, not all applications get past its internal review, while others get the lender’s seal of approval.
For borrowers, it is best that they are familiar with all that’s written in your credit file so as to avoid getting surprised in your home loan application.
Can you afford it?
Before going into the deeper part of the home buying experience, the very first thing that you should do is to know whether you actually afford it.
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Since home loans may entail a large amount of money for upfront and ongoing costs plus these are generally a long term commitment, which can take up to 25 to 30 years, it is a must that borrowers ensure that they have cash that they can access.
It is important that borrowers have access to cash or any form of finances to cover the costs associated with the borrowing, which includes the deposits and miscellaneous expenses.
Concessions and grants
The national government and some territories provide incentives for first time home buyers such as exemption from paying the stamp duty or certain discounts. To avail of these schemes, you need to do some research to know whether you qualify for these concessions and schemes.
Researching for the associated costs of your prospective mortgage is important to get the best deals from your mortgage. Comparing loans from different lenders or banks should be done before committing with a lender. You can compare the rates, costs, and other perks that come with the loan to know which one works best for you.