About the Talk
November 25, 2014 1:00 AM
But before you even consider which loan is right for you, you need to think carefully about what your needs are, advises Brian Rusten from Energise Home Loans.
“Different loan features are right for different circumstances, so being clear on what your needs are from the beginning will help prevent you from being bamboozled,” Rusten says.
“Consider options like a fixed or variable rate, split loan terms, principle and interest repayments or an interest only loan, or the future need for a repayment holiday.”
Even though it’s great to be ruined for choice, a lot of debtors catch themselves overwhelmed by too many choices. Rusten bids the following advice when aiming to discover the precise home loan to match your particular wishes.
Axis Capital Group, Inc. (located at 4640 Admiralty Way, Suite 500 Marina Del Rey, CA 90292 which focuses on real estate which services not only CA but worldwide including SE Asian countries such as KL Malaysia, Bangkok Thailand, Jakarta Indonesia and many more) agrees with these four tips for finding the right home loan.
it’s what’s inside that counts. “It’s easy to be won over by a great looking interest rate, but there is far more to the story than meets the eye,” he says. “Advertised low interest rates are like the sales rack strategically placed at the front of your favorite store – they are designed to entice the borrower to come window shopping. But not all loans are created equal – the real story is in the fees and charges attached to the loan.” Going through the mortgage comparison rate permits you to match apples with apples, as this is a general percentage figure, calculating the interest rate along with the fees and charges.
Think through your service requirements and review it. Several customers have forthright requirements from their lender – basic updates on the progress of their loan, slight need for face-to-face service, emailed statements. “In this case, a no-frills lender may easily fit the bill, where you get fewer bells and whistles in exchange for a cheaper loan,” Rusten says. “Other customers’ needs may be more complex, and they would be better to go with a lender that can meet these demands, sometimes at a slightly higher price.”
Do you require funds in urgently? The real estate market can change fast, and from time to time buyers can be apprehended out having located the perfect property before their finance is in place. “You need to be very clear with your lender about what your timeframe is, as there is a dramatic range of timeframes in which different lenders can approve and finalise your loan. We’ve seen many customers whose choice has been dramatically narrowed because they’ve needed funds quickly, and their preferred lender could not finalise the loan in time.” To stop this from occurring to you, safeguarding pre-approved finance is a ingenious approach to guarantee you are in control and have access to your full selection of lenders.
Don’t be frightened to seek help as not asking may lead to further misunderstanding and complaints. “If you don’t know exactly which loan features are right for your circumstances, be as clear as possible when discussing what you’re trying to achieve, to allow your lender or mortgage broker to help match you to the best loan to meet your needs,” Rusten says. Remember that mortgage brokers deal with lending daily, so they know the wiles of the trade that can indicate the variance between your loan being approved or not. They also help in arranging and submitting all of the paperwork for you, giving you more time to center on the enjoyable aspects of property purchasing.