If you are going to apply for a mortgage, it is imperative that you do all you can to make yourself attractive to lenders. Here are some tips that could help you.
Before you fill out the application form make sure that you understand the mortgage market. Find out as much as you can about mortgage terms and make sure that you fully understand the difference between a fixed mortgage rate and a variable rate. If you are a first time buyer, you might like to ask friends or family who have bought their own home for advice, but do remember that they are not financial advisers.
A mortgage broker can answer any questions that you may have about mortgages and can help you to find the best deal to suit your needs and warn you about hidden costs.
These days it is advisable to have a sizeable deposit before you buy. A good idea would be to set up a separate savings account and place money every month from your salary into this account. Make sure that it is an account with a competitive interest rate to make the most of your money.
Look for a home that suits your bank balance, and remember you might need to make some sacrifices. You also need to remember to find a home close to schools, transport and shops as these types of houses usually are a good investment.
Before you make an appointment to see a lender, make sure there are no factors that could damage your chances of getting a mortgage. The best way to go about this is by checking your credit rating with one of the credit reference agencies such as www.mycreditfile.com.au or go to the Australian Securities & Investments Commission to get a copy of your credit report.
Remember if something looks too good to be true, it probably is. You will need to go through the details with a fine tooth comb and make sure you are aware of the terms and conditions.
As with any financial product, you should never accept the first deal you are offered. You are more likely to find a mortgage that suits you by approaching a range of lenders. One of the easiest ways to compare available deals is by clicking on our home loans icon and search for the best home loan from our panel of over 30 lenders.
Remember to consult an independent mortgage broker before taking any drastic action.