Did someone say Champagne?
Buying your own home is one of THE most empowering things you’ll do in your life! It’s a chance to invest in your future, assert your independence, start creating your own memories, possibly even your own family. But where do you begin when it comes to such a big move?
Say hi to your new BFFs, the wonderful team from Bernie Lewis Home Loans! They’re your home loan experts; the team you can trust to take away the stress of chartering unknown territories. Getting a home loan is the largest financial transaction for most people — it can be a complex process, but these superstars will compare loans across a wide range of lenders and make sure you get the best bang for your buck with the right loan for your needs.
We caught up with Managing Director Scott Matthews for some super handy tips for those in the game…
Picture :: Annie Beth Photography
I’m ready to buy — what should I do first?
It can seem daunting but first up, get a grip on your finances and obtain a pre-approval before you start househunting. Then you’ll realistically know your limits — how much you can afford to borrow, what the repayments will be, whether you have enough deposit and, more importantly, have a pre-approval so you can bid at auction or negotiate a purchase with confidence. In the current hot property market, many real estate agents won’t even consider an offer unless they’re sure you can obtain the finance to sign on the line.
Help! I want to get on the property ladder but can’t afford a house in the area I want.
Have you thought about rentvesting? This is where you buy a property in an area you can afford and rent it out whilst you continue to rent and live in your dream spot. The benefit here is that the tenant in your property will help you pay the mortgage on the investment property, and you’ll enjoy the long-term benefits of property ownership.
How do I ensure I don’t overborrow?
Every lender has a different lending policy so you’ll get a different answer from each one. Some will lend more and some will lend less, but keep your eye on the big picture. It shouldn’t be about the maximum amount you can borrow, but the maximum you can afford. You want to land on a competitive loan that fits your needs and lifestyle and going beyond this is just setting yourself up to fail — a bit of thinking upfront can save a world of pain down the track. We can step you through this and we have plenty of handy online tools to help nut out the figures.
How much deposit do I need to buy?
The short answer — it depends! On the price range of homes you’re scouting, whether you’re looking to buy an established house or build a home, what rebates and incentives might be available to you and various other things. Working this out is our jam — it’s what we do best and we love helping people just like you.
I have a home loan already — how often should I get it checked?
Mortgage repayments can be a set-and- forget kind of deal, but regularly reviewing it could add up to making a big difference. A review with us is a free and simple process, and it can generally be done over the phone and email. Our tip is to look at it every two years to ensure it remains competitive in the market and ensure it’s still meeting your needs.
You should also have it reviewed if you are approaching the end of a fixed interest rate with your current lender or if your household financial circumstances are expected to change. It’s also important to be aware of when interest rates are likely to rise so you can get on the front foot and prepare for it.
At the end of the day, we love guiding you through this journey and we want to see your dreams come true. Get in touch for a chat today.