Buying a home is an ultimate dream of an average middle-class person. And getting the correct home loan is the first hurdle that needs to be crossed. The icing on the cake is when the person is a first time home buyer. People are not completely aware of the tedious process and one thing or the other tend to be left out.
Therefore, to ease some burden off their shoulders, people taking first home loans in Gold Coast must consider these 7 points:
- Keep at least 20% of deposit money.
If you are seeking help from a non-bank, they may accept 10% or less than 10% of the deposit amount. But most banks and certified lenders ask for 20% of the deposit money. So, keep at least 20% of the total amount you need for buying the house for deposit. This also ensures that taking less amount of loan will have lower repayment and less interest in the long run.
- Learn about your credit ratings.
Your credit score is directly and closely related to the loan application. Lenders review your score sheet to determine your eligibility for the mortgage. So, you must review your credit score to see if there is any default listed or any mistake made. Because if not corrected in time, these things can hugely impact the chances of getting your loan approved.
- Carefully calculate how much you need to borrow.
This is one of the most crucial calculations that must be done precisely. When deciding to find a home loan and what amount of it, the first list down other related fees like mortgage risk fee, stamp duty and legal fees. Based on that you can get a numerical figure that needs to be borrowed. Then consider your current income and corresponding expenses linked to it. This will help you work out how much amount each month can you block for loan repayment from your income.
- Find a Home loan that suits your needs.
First home loan brokers in Gold Coast say that interest rate is an important factor but not the only crucial factor while taking a home loan. Homebuyers must also consider repayment facility, refinance costs, redraw and offset facilities, Fixed and variable interest rates and other loan-related fees.
- Research the market well.
Conduct good research to understand the property market in a particular area from the perspective of current and future development. Look for rental returns, median prices over a decade, local amenities like schools, shops and transport links.
- Invest in potential areas.
Look for properties that are cheaper to buy and have good potential for development in future. For example, if you buy a newly renovated house, you will have to pay a good amount for the applied aesthetics. On the other hand, an existing house which has been used before and does not look pretty will cost you much less and later you can have the renovation done with your own taste and preferences.
EndNote
Following these beneficial tips will help you get a good deal for your first home loan in Gold Coast at reasonable interest rates and take you one step closer to your dream home.
Resource URL: https://wiredgeneral.wordpress.com/2021/11/02/6-things-to-consider-while-looking-to-take-your-first-home-loan/
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