October 29, 2015
To avoid the stress and ensure you make the best purchasing decision for your needs, there are five common mistakes you should avoid.
1.) Failing to do enough research. Savvy property choices are made by researching different types of lenders, home loan types and the range of features available.
2.) Failing to budget. Many potential home buyers think saving a deposit is all they have to do before buying a home. In reality, there is a lot more involved. In the first instance, it pays to start a budget before you buy a property. A budget helps you monitor spending and determine what mortgage repayments you can service.
3.) Dismissing the value of pre-approval. A loan pre-approval, which generally lasts for three to six months, provides assurance as to what you can borrow before you go property hunting. It is a terrible feeling to have your heart set on a property only to find out you can’t afford it.
4.) Focusing too much on interest rates. While your home loan rate needs to be competitive, having the sharpest home loan rate isn’t everything. In fact, some lenders who offer really low rates, may have other hidden fees. So don’t shop for the lowest rate, shop for the right home loan.
5.) Attaching unnecessary features to their home loan. The reality is, additional home loan features sometimes come at an additional cost and every borrower’s situation is different, so what home loan feature may work for your friend, may not work for you.