Getting the right financing in place is crucial for buying a home. If you don’t get your home loan set up properly it could delay the purchase of your home or force you to pay much more than necessary. There are 10 major mistakes that you need to be aware of and avoid with your home loan.
Not Shopping For the Right Home Loans
There are plenty of lenders in Australia that want to handle your home loan. Each lender has a different set of interest rates and fees. It’s important to research a few lenders before making a decision. Settling too early on an overpriced loan can mean thousands of dollars of unnecessary costs.
A few good places to start include:
Not Getting Preapproved
The time to lock down a home loan is before you go looking at houses, not after. This way you’ll know that you have financing in place as well as how much you’ll be able to borrow. If you wait to apply only after you’ve found your dream home, you could be in for a nasty surprise.
Too Many Career Changes
When you apply for a home loan, lenders will want to see a history of steady employment. If you keep changing jobs, this will worry lenders as they’ll be concerned whether you can handle your loan payments. Try to maintain a stable career if you’re planning on buying a home in the near future.
Not Saving Enough
Lenders generally expect you to make a sizable down payment for your new home. If you’ve got no money in the bank when you apply, it’s going to be tough to qualify for financing. Start saving money for your home as soon as possible.
Not Considering all the Costs of a Home
When new buyers are looking at homes, they often forget that they’ll be paying for more than just the cost of the house. They’ll also need to pay for insurance and property taxes along with the home loan payments. Forgetting these extra costs can lead to you buying a house you can’t afford.
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