March 13, 2014
Now may be a great time to consider your property options, with interest rates sitting at historical lows, and lenders proving they are hungry for business.
Local Penrith Mortgage Choice mortgage broker Paul Holland said there are a few simple steps that first homebuyers can take to ensure they feel more confident about buying property. “Purchasing property can be a complex process but, provided you set achievable goals, do your due diligence and seek professional advice, home ownership can be a rather fulfilling and enjoyable experience,” said Penrith mortgage broker Paul Holland.
Mortgage Choice Penrith offers a few tips to help you feel more confident about getting into the property market and achieving your goal of home ownership sooner rather than later.
Consider Lenders Mortgage Insurance (LMI): As a borrower, if you do not have a deposit of at least 20%, you can be forced to pay LMI. This insures your lender, protecting them against any loss incurred if you default on your loan. It is important to weigh up your options carefully and consider whether or not it is right to pay LMI and jump in now, or hold off, watch the property market and save a larger deposit. While LMI does not protect you as the borrower, it can potentially help you purchase property sooner if you have a smaller deposit.
Buying with others: If you’re struggling to put aside enough money each month to save a deposit for your first home, you could consider pooling your money with others, be it a partner, friend or family member. Of course, if you decide to go down the path of co-ownership, it’s important to seek legal counsel as this will help you to address all the important issues upfront, such as what would happen if one person sold their share or defaulted on their mortgage. Combining your funds will not only give you a bigger deposit, it may also increase your borrowing power and help you secure a home loan that meets your needs.
Choosing the right home loan is an extremely important part of the home buying process. Let your mortgage broker do the legwork: At no cost to you, your local Penrith mortgage broker can walk you through the mortgage minefield and help you find the right home loan for your needs – often saving you a great deal of time and money.
Get ahead with pre-approval: Before hitting the pavement in search of your new home, consider getting pre-approval. This will give you a good idea of your borrowing capacity and save you from looking at properties that aren’t in your price range. Contact your local Penrith mortgage broker to obtain home loan pre-approval.
If you want to learn more about your home loan options, call your Penrith home loan specialist Paul Holland on 0410 787 607, or log onto: www.mortgagechoice.com.au/paul.holland