Having helped many friends, family and customers secure a home loan, from experience we understand that it’s easy to make mistakes along the way. Here are some tips from LoanDolphin to help you avoid making some common mistakes when it comes to your mortgage loan.
Don’t over apply
When you are looking for a loan it’s easy to shop around which may result in you completing many applications. Be aware that doing so, can result in credit enquiries on your credit file. This could (to a certain level) impact your application. While there may not be a direct correlation between the rate and the number of credit enquiries, the broker, or the representative may have to explain the enquiries, which could take time to process.
Read the contract
Make sure that you read the contract or get some help from a family member or a friend. You should read the contract to understand the costs involved such as exit fees. Also make sure that important details are recorded correctly such as your personal information and the loan duration.
Don’t stretch your budget
Always stick to your budget. Remember that there are other costs involved when you are making a purchase. As part of the “responsible lending practices” most financial institutions calculate your loan serviceability based on a 1% to 3% higher rate than the standard rate. This is so you are still able to afford the loan if or when there are future rate hikes.
It’s not always about the rate
While the rate is important when you are shopping around, it’s not the only thing that matters. Understand your short and long term goals. Ascertain if you require flexibility; compare the comparison rates and other fees involved.
Don’t be sold to
Even though there is plenty of competition in the market among mortgage loans, as a consumer make sure that you are always on top everything. Don’t fall into the trap of having to take up insurances, agreeing to seeing the financial planners or taking up unnecessary add-on’s for a rate discount. You can always use LoanDolphin to find the right bank lender or broker who cares about getting you the right mortgage loan.
LoanDolphin is where you can go to find the best bankers and brokers. Take 3 minutes to post an auction and watch bank lenders and brokers fight for your home loan. Get started today!
Disclaimer: This blog post has not taken into account your objectives, financial situation or needs. Due to this, before acting on any general advice/information in this communication, you should consider whether it is appropriate to your objectives, financial situation or needs.