Take your time when choosing a home loan
Applying for your first home loan is an exciting time, but one step that really is worth taking is establishing exactly what you want from your mortgage.
There are so many different products on the market that knowing which one to choose isn't always a simple process, but doing some homework can improve your chances of making the best decision.
Here are some questions to ask yourself that should help put you on the right track.
How much deposit do I have?
The type of home loan you are able to apply for may depend on how much of a deposit you've managed to build.
Some lenders will require a minimum of 20 per cent, but you may find others are more flexible.
In general terms, the more money you have saved up, the greater number of options that will be open to you.
What type of mortgage do I want?
There are many different types of home loan, so knowing which one will be best suited to your requirements is essential.
It might be that you want the security of a fixed-rate deal or want to cash in on all-time low interest rates and opt for a variable product.
Discussing your options with a home loan expert is one of the best ways to address the pros and cons of each product and which one will suit your requirements.
Can I meet the repayments?
Bear in mind that even once you've received a home loan offer, it's important to think about whether meeting the repayments will impact your lifestyle.
You might have enough money coming in each month to pay off your lender, but what about the other bills? And will your lifestyle take a significant hit?
Weighing up all these factors will help ensure you select a product you are well and truly happy with.