7 Mistakes to avoid when taking residential loans
Planning to buy a house is a big step in your life. So, you must make the right decisions along the way.
Do you have trouble deciding which is the best home loan plan for you? Or are you afraid of making many mistakes in the process?
We have prepared for you seven mistakes that first-time home buyers usually commit (So that you can stay away from them)
- Choosing the wrong home loan
If you’re a first-time home buyer, it would be pretty hard and confusing to choose the best home loan product in the market. So, make sure you choose the home loan that caters to your needs. Make sure you research correctly with all available resources before finalizing a loan plan. Selecting a home loan plan that doesn’t suit your needs can, in the long run, delay you off paying your mortgages.
- Do not borrow more than you can
You may want to live in the most expensive house in your locality, however, you must ensure you are not borrowing beyond the limit. No matter whatever your lender says, if you are not confident of repaying the loan, then don’t borrow more than you can afford
- Research and get the best interest rate
You must research properly and find out the home loan with the lowest interest rate. Finding a relatively lower interest rate can save you thousands of dollars in the long run. Don’t take a loan under your current bank simply because you have long been associated with them as a customer. Make sure you research thoroughly.
- Don’t underestimate the other costs
One common mistake first-time home buyers make is underestimating the additional costs involved. The initial deposit is not the only way you lose money. Your home loans will not cover stamp duty, bank charges, or pest control. Hence make sure you have cash for all of them.
- Not viewing as many properties as you should.
Make sure you thoroughly research the place you are going to live in. Make sure you have compared the prices in that area where you want to buy the house and then, eventually, apply for the loan. Not researching the neighborhood and price can cause you lots of trouble. Also, try to view the house in person and not through pictures.
- Do not apply when you are not financially stable.
Make sure that you do not apply for loans when you are financially not stable. That means when you are in your probation period or having a career change. Make sure that you have the means to pay back before taking the loan.
- Go house hunting after you secure the loan and not vice-versa.
Make sure you decide which home loan you take, and finalize the amount before you go house hunting. House hunting will help you remind yourself of the budget and help avoid overspending.
Are you searching for your dream home? Do you want to know about the best home loan for you? Or Are you looking for the best mortgage brokers in Sydney? If yes, our expert mortgage brokers can help you. Just drop us a message at freshwaterfs.com.au
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