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10 Mortgage Questions a First-Time Home Buyer May Be Embarrassed to Ask First-time home buyers have a lot of questions about mortgages. The problem is compounded by the embarrassment of interrupting a would-be lender or mortgage broker in the middle of a conversation.No, not everyone knows the questions that should be asked. You should ask these questions. Research and study a bit, so you know the basics. Here is a short guide to the most common mortgage questions and answers you need to know.How much can I borrow to purchase a home in Sydney?Lenders may consider your debt-to-income ratio, employment status, and credit history when determining how much you might qualify for. You should talk to a lender about getting pre-qualified for a home loan before you start searching. The whole experience can be made better if you do this. Special government-sponsored mortgage programs may be available to veterans and first home buyers. Your lender can tell you what you might qualify for. How does a mortgage pre-qualification differ from a mortgage pre-approval?A pre-approval holds more weight than a pre-qualification. You can get someone to print out a pre-qualification letter for you online. You’ll discover that if an agent is looking at a pre-qualification letter when you’re negotiating, it probably isn’t worth much to them. Pre-qualification is not an approval or commitment to lend; you must submit additional information for review.A pre-approval letter takes more time and effort to prepare because lenders verify your finances in an independently verifiable way. For that reason, it carries more weight. If you're serious about buying a home, ensure to get yourself pre-approved. How much money do I have to pay down?Put down 20% of the purchase price if you want the best rate and terms on your loan. Although higher down payment isn't necessary, a lower down payment can result in a PMI premium if you're under 20 percent.The down payment you put  will also have an impact on other variables such as interest rates, terms, and monthly payments. Ask your lender for more information regarding the minimum down payment required for your loan and any cost-saving assistance programs you might be eligible for, and then decide what’s right for you.What kind of assistance is available to help with the down payment?If you need help with down payment, experts say your parents may be able to help — provided their finances are in order. Gifted money can also be helpful. Even so, you must absolutely inform your lender that the money was a gift  otherwise faking on this front would raise red flags.If private assistance isn’t a possibility, or isn't enough, there are over 2,000 down payment assistance programs in Australia that can help,as  long as you meet the eligibility requirements for both income and credit.Find out if there are any programs in your area to help you become a homeowner through your real estate agent or lender.What's the rate of interest?You should … [Read more...] about 10 Mortgage Questions a First-Time Home Buyer May Be Embarrassed to Ask

The federal government’s HomeBuilder grant has led to the largest number of new home sales in two decades, according to new data.The Housing Industry Association (HIA) has reported that:The number of new home sales in December was 91.8% higher than NovemberDecember was the biggest month for new home sales since March 2001Sales volumes for 2020 were 32.5% higher than 2019 “This surge in sales can be attributed to HomeBuilder as households finalised contracts to build a new home before the 31 December 2020 deadline to access the $25,000 grant,” according to the HIA economist Angela Lillicrap.HomeBuilder is continuing until the end of March, but with a reduced grant of $15,000.Needing a great deal? Hit the button below to arrange a conversation with one of my loan specialists to find a deal that's best for your situation. Book a review today We partner with over 50 lenders so you can find the perfect solutionFollow Facebook Linkedin Do you have questions about mortgages or loans?Ask us in the comments below … [Read more...] about New home sales jump 91.8% in December

Should I Work With a Mortgage Broker? Should I Work With a Mortgage Broker? You should consider using a bank loan officer or a mortgage broker if you plan on buying a home. Here's what you need to know.Mortgage shopping can be an overwhelming task. There are many mortgage lenders and a variety of ways lenders can adjust home loans to make them look lower than they actually are. You may also feel vulnerable as lenders scrutinize your credit report while you're excited to own a new home. In many cases, home buyers are trapped in bad mortgages because they just wanted to get the process over with. Sadly, that's a big mistake: Even fractional percentage points are enough to add up to thousands of dollars for a 30-year mortgage. What does a bank or Credit Union loan officer do? Bank loan officers are employed by a specific bank or lender and often receive volume incentives when they provide clients with loans from a single bank's or lender's branches.You can apply for a mortgage by walking into the bank or credit union in your area and sitting down with a loan officer. They will consider your application and, hopefully, present several loan options tailored to your situation. If you’re a loyal customer, you might get a wonderful deal from the bank.The best mortgage rates are often offered by small local banks and credit unions. The problem is that many of these institutions only lend to consumers with excellent credit scores. If such a requirement isn’t met, many first-home buyers simply won’t qualify since they don’t have long enough credit histories.However, let's say your bank offers you a loan. But how do you know it's the best deal unless the bank offers a lower rate than national averages? So you go to another bank to get a quote, or you go to a mortgage broker. Mortgage brokers They are responsible for connecting borrowers with lenders. Usually, they work for more than one lender and earn commissions on each sale. The same way talent agents show aspiring actors to films, mortgage brokers present applicants to different lenders.The best mortgage broker will work to find borrowers with less-than-perfect credit, the lowest rates and also the cheapest mortgages. The broker gets paid more when the loan is more expensive. Additionally, brokers may not want to show you the absolute best loans (although I am not saying they all do this).So shop around and make sure to negotiate as you would with a home or car: Don’t be afraid to push for better terms and don’t just say the first thing that catches your eye. Mortgage Broker Vs Loan Officer Mortgage brokers work with a variety of lenders to offer borrowers a variety of loan programs. In return for a fee or commission, brokers connect borrowers with specific lenders and loan programs that match their needs.A loan officer, on the other hand, works for a specific institution, like a bank, and has access to the products that they offer only via that institution. … [Read more...] about Should I Work With a Mortgage Broker?

If you’re in the market and you’re struggling to find property, there’s a good reason – the number of homes listed for sale had an unexpectedly large fall in December.SQM Research has reported there were 272,999 properties listed for sale in Australia in December, which was down 7.9% on the previous month and 5.8% on the previous year. This shortage of properties has helped drive an increase in prices – which is why some commentators expect listings to significantly increase in January and February, as home owners look to cash in.If you’re planning to buy in 2021, here are three things to consider given the unusual conditions right now:Expect to pay a low interest rate for now but budget for future increasesBe prepared to move fast if there’s a shortage of stock in your target areaConsider how Covid-19 might affect inspections and auctions in your areaWanting to buy in 2021?Hit the button below to arrange a conversation with one of my loan specialists to find a deal that's best for your situation. Book a review today We partner with over 50 lenders so you can find the perfect solutionFollow Facebook Linkedin Do you have questions about mortgages or loans?Ask us in the comments below … [Read more...] about Big fall in the number of for-sale properties

Banks have raised their lending standards over the past decade or so, by reducing their volume of low-deposit and interest-only loans. The share of home loans with a loan-to-value ratio (LVR) of 90% or more (i.e. a deposit of 10% or less) fell from 22% in 2009 to 9% in June 2020, according to data from APRA, Australia’s mortgage regulator. Meanwhile, the share of interest-only loans was 46% in 2015, but averaged only 17% of new lending from mid-2017 to mid-2020.That doesn't mean it's no longer possible to buy a home with a 10% deposit or take out an interest-only loan – it is. There are still lots of options available for that type of borrower.Needing a great deal? Hit the button below to arrange a conversation with one of my loan specialists to find a deal that's best for your situation. Book a review today We partner with over 50 lenders so you can find the perfect solutionFollow Facebook Linkedin Do you have questions about mortgages or loans?Ask us in the comments below … [Read more...] about Australia’s mortgage market has been getting safer

Your Local Mortgage Broker in the Northern Beaches, Sydney How do I find a mortgage broker in Northern Beaches, Sydney? Mortgage brokers are financial professionals who work to connect lenders and borrowers. Usually they work with dozens or hundreds of loan companies as independent agents, not as employees.Mortgage brokers are like scouts. They identify and evaluate home buyers, determining which loan would be best based on each person's credit situation. The broker submits the home buyer's application to few lenders for the approval of the loan, and works closely with the lender until it closes. The best mortgage broker can find a lending institution for pretty much any type of credit situation that you have. To  find the right mortgage broker in Sydney, ensure you ask the right questions.One important fact borrowers should realize is that great brokers don’t tend to focus on every market, they tend to stick to a particular niche.Moreover, the needs of a first-time home buyer may be different compared to the needs of a busy professional.In order to determine whether your broker is a good one, ask the following questions to your mortgage broker after you have a shortlist of potentially good mortgage brokers.Are you licensed to operate or are you using someone else's Credit license?Are you a member of the FBAA or the MFAA?What is the length of their tenure in this industry?Which lenders do they usually work with and how often?Do they have any testimonials or customer reviews?What can you offer your customers that others can't?How many accreditations do they have? If they have less than 10 accreditations, then they probably aren’t very good.In the last 12 months, how many lenders did they use? A good mortgage broker would work with at least eight lenders.How many home loans have you closed in the last 12 months?What types of clients are you most frequently working with?It’s  about finding a broker who is experienced, and dealt with clients in similar situations, e.g. first home buyers, investors, construction work, Australians who live overseas etc. What is a typical mortgage broker fee? The mortgage broker who is securing your loan earns commission from the loan transaction and the better the deal they get a lender, the more they get paid. You don't need to disclose the interest rate you intend to accept to a broker. Let them tell you what terms they can obtain for you. Shop around to make sure you're getting a fair deal. Most of the mortgage companies advertising online are mortgage brokers. Why are some mortgage brokers in Sydney charging a fee? Mortgage brokers who are new to the industry or have less experience may levy an upfront fee or mandate as a means of obtaining commitment from a client to invest in their project, in case the broker spends time on the customer's application but never results in a settlement.They might have encountered a high rate of ‘tyre kickers’ and found that they were spending a … [Read more...] about Your Local Mortgage Broker in Northern Beaches, Sydney

Sydney's Mortgage Broker Says now is the time for a first home buyer Sydney's Mortgage Broker Says now is the time for a first home buyer Is it a good time to buy a home for first home buyers?A recession or economic downturn largely results in things such as lower industrial output, higher unemployment, a decrease in consumer spending, an increase in loan defaults and bankruptcies, and an absence of household income.Commonly they have an effect on the real estate market as well. During a recession, you might expect to see an increase in the number of foreclosures, flat or declining property values, a decreased sales volume and houses waiting on the market for longer periods before they sell.However, according to experts, in spite of bad news for real estate professionals and the industry overall, this can create opportunities if buyers can convince mortgage lenders they can afford to pay their loans even with an economy in turmoil. An approach to an experienced Sydney’s mortgage broker can make your loans as stress-free as possible. What should you do before buying your first home? Be honest with your finances before you buy. What concerns us is not how low prices can fall during a recession. But it’s about how much property you can afford to buy before the prices go back up. To pay your mortgage and survive the downturn is at least as crucial as finding a low-priced home.Be honest about your own financial situations as well—recessions do not just affect homeowners. An unstable job can make bargain homes unaffordable in the long run. If you’re a business owner, determine whether or not you expect your business to continue to flourish in the present economic situation. Benefits of Buying During a Recession:.  Lower home prices:. According to supply and demand, where there are fewer buyers, a home seller might lower their price to make their property more appealing. Fewer buyers generally mean longer selling cycles, which can cause difficulties for those looking to sell in a hurry due to financial reasons or because they have other opportunities somewhere else. To escape months of marketing and hosting open houses, they will lower their asking price or accept offers that are lower than their asking price. So, if you’re looking to buy a house, you might come across:. Property owners who are willing to offer a lower asking priceHomeowners who do a short sale to get out from under their mortgageBanks that sell foreclosure propertiesRates Are Lower:.Recessions tend to bring down mortgage rates along with falling home prices, and the housing industry always plays an important part in the economy. During a recession, the federal government hopes that by lowering mortgage rates, it can boost home sales and make it cheaper for borrowers to borrow mortgages.Less buying competition:. When the economy is in a slump, fewer people have the funds to buy a first home or upgrade to a larger one. It may be that, depending on … [Read more...] about Sydney’s Mortgage Broker Says now is the time for a first home buyer