Every mortgage broker knows that most people fear their property purchases. However, it’s not really something we need to be as afraid of as we actually are. Here’s why you don’t need to be stressed out by your property purchase.
But it costs so much!
Of course, a property is one of the biggest single price-tag purchase you will make. It’s often a borrowed amount, which considerably adds to the stress and panic people feel. It is legitimately a very big decision and commitment to make. The good news is we have some top mortgage broker tips to help make that decision less nerve wracking.
Do you know what you are looking for?
Before you even dial up your nearest mortgage broker, take a while to truly think about what you are looking for. That means not getting lost in airy dreams like ‘just the perfect home that speaks to me’, and getting serious about the practicalities.
- Should it be within x minutes of a school?
- Are there needs like being within walking distance of entertainment spots or shops?
- Do you rely on public transport and how close is access?
These questions and more will help you narrow down the nitty-gritty of what you actually need.
Now consult a mortgage broker and find out what’s possible.
Now you have a good idea of what available properties match your criteria, you can start getting serious. What is your borrowing capacity? A mortgage broker will be able to help you come up with a realistic idea of what you can do. With a realistic figure, you will be able to narrow the field from ‘properties that match what I want’ to ‘properties that have what I need and I can afford.’ It will also prevent the heartbreak of not being able to close on a property you really fell in love with.
That said, you are going to need to coordinate the pre-approval process well. Those amounts often don’t extend for longer than 3 months, and people often find that that period runs out fast. The legalities surrounding purchasing property can drag out, so giving yourself time is important. Expiring credit approval can even damage your credit report, so get this fine balance right.
Expect financing to be harder than you think.
Remember that lately credit has become harder to secure and banks stricter. Make sure your financial situation is in tip-top shape before you apply, to avoid getting hits and setbacks. A simple overdue credit card can significantly impact your ability to get credit. Try and get your financial affairs tidy for at least three months.
Be sure to declare all income streams, too. A simple eBay sales account you forget to mention, or a credit card you don’t use regularly, could sneak up and bite you.
A good mortgage broker looks far beyond the interest rate. They will help you structure a proper financial package that caters to all your needs, be that starter homes, dream houses or investment properties. Speak to www.mortgagebrokerco.com.au to help you get started today.