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Buying a home can be a really stressful time in your life, which is why you need a home loans guide to help. There is so much to research to be done with regards to home loans; so much to understand, that it can make it quite daunting trying to figure out where to start. At Lloyds Financial Services we can help you with all your home loan needs and this guide will provide you with answers to some of your more pressing concerns.
Where Should I Start?
Before you even begin to think about purchasing a property, there are a few key areas you need to look at first.
First, you need to get your finances in order. Do you know how much you’re currently spending? What’s your total monthly outgoings?
Once you’ve got answers to these questions, you need to create a budget so you can easily see how much money you’ve got left over at the end of the month.
Once you know where you’re at budget wise, the next step is to see what you can actually afford when it comes to mortgage repayments.
Our mortgage repayments calculator can help you figure out how a home loan would fit into your current budget.
This will help you determine what you can afford and whether you need to make any adjustments.
Your Credit File
Once you’ve got the above sorted, it’s important that you also understand what your credit score might be. You can get a good idea about what this might be by reviewing your credit history. Companies like Veda Advantage maintain credit files on all Australian’s.
This typically includes information about any credit cards you’ve applied for, personal loans, bank accounts, defaults (missed payments) etc.
It’s important that you are aware of what’s listed against your credit file, as your credit history plays a large part in your ability to borrow money for your home loan. If something doesn’t seem right, make sure you speak to the company listing the issue so that you can get it quickly rectified.
Choose a Home Loan
Once you’ve figured out what your budget it is, it’s time to choose the right type of home loan that will best meet your situation.
Not all home loans are the same, so figuring out what type of home loan will meet your financial situation is key to ensuring that you don’t live beyond your means.
If you decide to utilise the services of a mortgage broker (like us) make sure that you’ve complete your own due diligence first. Not all mortgage brokers will look after your best interests, so it pays to do your own research as well.
At Lloyds Financial Services, our Home Loan Experts can provide you with a variety of home loan options based on the information you provide to us. We offer this service at no charge to you and our team will provide you with several different home loan recommendations.
Understand the Costs
While you might already be aware of some of the costs associated with buying a home and getting a home loan, it can still be overwhelming and you could miss some important costs.
Use our buying costs calculator to work out what the true costs will be when buying a property. This will ensure that you don’t encounter any surprises along the way.
Ask the Right Questions
It’s important that you understand the right questions to ask lenders and real estate agents when you’re looking at buying property. By not being aware of what you need to know, you could find yourself buying a property that’s difficult to sell further down the track, or you could end up paying more than you need to in interest.
Arm yourself with the following questions and make sure you get these answered:
- What is your current fixed interest rate and variable interest rate?
- What is your minimum deposit amount?
- How much deposit would I need to provide in order for Lenders Mortgage Insurance to be waived?
- What fees do you charge to set up my mortgage?
- If working with a real estate agent, make sure you understand what their costs are for helping you find a property (if any).
- Ask your real estate agent for a report on the property values over the last 12 months in the areas you’re looking at. This will give you a good sense of whether values are on the up or down.
There are many more questions that will crop up as you work your way through the home buying process, which is why utilising our mortgage broker services will help alleviate some of the stress associated with buying a home.