There are a whole set of doubts that you might want to clear up with your best mortgage broker or lender, and clearing these doubts beforehand might save you from a lot of trouble – possibly even save you a lot of money! So, what mortgage questions must you ask your mortgage broker or lender to make the best choice for yourself? Here’s a list we have compiled, which covers the significant areas to give you a head-start on your home buying journey:
1. What would be the best loan for a first home buyer?
When you seek to buy a home as a first home buyer, you might approach your mortgage broker with a straight face – not knowing what to ask or where to begin. But the best mortgage brokers will tell you that the first and foremost thing you need to know before obtaining or applying for a home loan is the type of loan that suits you the best.
So first, your mortgage broker will assess your individual needs by asking a long list of questions, from credit cards to income and expenses and any assets you have. The first question that you need to ask your best mortgage broker, without even waiting for their assessment to begin, is the type of loan that will suit you the best.
2. What all info do I need to furnish to obtain a loan?
While applying for a loan, the applicant’s required information must be remembered and recalled – so it’s better to have a checklist. The best mortgage broker in Sydney provides you with a list of items that you need to produce when applying for a home loan – or you can ask your mortgage broker for one.
Your proof of identity, which could be your license or passport or your Proof-of-Age card, is the primary document required. Additionally, you need to have proof of income and a proper record of your finances and expenses – the more detailed, the better – including payslips, utility bills, council rates, tax returns, a history of what you owe, etc. All these documents are necessary, and you need to have them with you when applying for a home loan.
3. What are the fees on the loan and interest rate?
There are many costs, charges included in obtaining a home loan, so it is essential to know the exact amount you need to borrow. This amount should include costs such as establishment fees and the lender’s ongoing service fees. If you know these in advance, it is easier to calculate the amount you should borrow.
The best mortgage broker will also explain to you the functions and benefits of Comparison Rate. This might come handy if you want to compare two or more loan products to avail a loan at a low interest rate.
4. How much deposit is required?
Deposits are an excellent way to manage your mortgage repayment. Usually, the deposit ranges from anywhere between 5-20%, if you are well-qualified. A smaller deposit, in the beginning, means increasing your Lender’s Mortgage Insurance Premium, so think and choose wisely.
Given the tricky relationship between these two amounts, first home buyers should try to avail the experience of the best mortgage broker in Sydney. Nfinity Financials guides you through each process with ease and expertise and helps you decide on an amount for the deposit that would suit your repayment schedule the best.
5. What benefits can I avail of from government grants/schemes?
In large-scale financial matters, such as buying a home, a helping hand, a push, or assistance can play a significantly beneficial role. It not only boosts your morale but also provides you with an initial safety net. State and federal governments both provide some attractive and generous concessions and grants to first home buyers. These amounts may vary depending on a few factors, but they are a great help, nonetheless, for those seeking to buy their first home.
The best mortgage broker should be able to tell you the government schemes and grants you are eligible for and exactly what amount you can avail. Check out the schemes and grants you are eligible for here – Schemes & Eligibility
7. What are the terms and conditions I should be aware of?
All loans come with their own set of terms and conditions. You need to be well aware of the terms and conditions of the loan you are obtaining because it includes things like your lender’s refinancing policy if you wish to move your loan or penalties that may apply in case you miss a repayment.
Understanding terms and conditions might seem like a lengthy and tedious task. But remember that it’s wise to give them their due attention. This might help you enjoy your home buying journey long before you even get the sight of your destination. The best mortgage broker in Sydney will help you understand these terms and conditions with ease.
This is a preliminary list of questions to give you an idea of where to start with your broker or lender as a first home buyer. You might want to add more to this list or ask additional questions. The list can go on depending upon your case, but it’s always better to ask as many questions to your mortgage broker/lender as you want – so that you can ward off the fog of confusion and walk into your house on a beautiful sunny day.
When applying for a loan for a new home or investment property, or refinancing your current loan, the best mortgage broker can be an invaluable ally. Unlike when going direct to a lender, your mortgage broker can review a wide range of lenders and lending products to help you apply for the loan that suits your individual needs.
At Nfinity Financials, our best mortgage brokers act as the intermediary between you and the bank or lender. We will help you fill out any paperwork, negotiate the best deals on the market and be available to answer any questions you may have about your mortgage or the home loan application process.
If you have questions or queries in relation to your home loan, dial ‘1300 GET LOAN’ (or 1300 438 562) or visit https://nfinityfinancials.com/knowledge-hub/