Just as with any other product, buying a home is subject to varying interest rates and conditions. That?s why as a next time home buyer you need to be careful about the deal you opt for. In this article we provide some helpful tips and tricks to help you navigate the housing market to find the best mortgage deal for you.
Here are some tricks to get you started:
1. Contact various lenders: When it comes to finding a mortgage deal, there are several types of lenders willing to offer you competitive rates. For example, there are thrift institutions, mortgage companies, commercial banks, as well as credit unions. All of these will be providing you with varying interest rates, along with negotiable terms and conditions. As a next time home buyer, you need to contact different kinds of lenders. You could even contact a mortgage broker who will act as a middleman to arrange for different transactions between you and the lender. Sometimes the situation may be confusing as certain financial institutions operate both as lenders and brokers. Brokers do not lend any finance; they just negotiate the transactions. Be sure to identify which agencies act as both to avoid confusion.
2. Cost: The next most important consideration is the cost or the rate being offered by your lender. Being a next time buyer, you need to find the most competitive rate being offered, so that you save money. You are entitled to a no obligation quote from each mortgage lender. This will help you ascertain which is the best deal out of the lot. Also be sure to check if the rate is fixed or adjustable. This will have significant impact on your monthly mortgage payment. For adjustable rates, be sure to ask how it will impact your loan and monthly payment. Also check on the Annual Percentage Rate (or APR) because it usually takes into consideration fees such as broker fees, points and credit charges.
3. Deposit: Usually most mortgage lenders will ask for at least a 20 per cent deposit on the value of the house. However, as a next time home buyer you need to confirm this so as to be able to calculate your finances and budget accordingly.
4. Write down all costs: As a next time home buyer you are entitled to ask the mortgage lender to write down each and every cost associated with the loan. You can then be in a better position to negotiate and bargain on the fees. You may even ask your lender to reduce some of the costs involved to secure a lower rate.
5. Get a survey done: There?s nothing worse than buying a home only to realise later that a significant amount of your savings will go into renovating it. That?s why it?s so important to get a professional survey done even before you buy the house. There are plenty of structural engineers and architects whose services you can hire. They will be able to inform you better on the structural damages in the building. If you know these costs, you'll be able to incorporate them into the loan itself.
If you'd like help finding the best mortgage deal for you, fill out our short next time buyer mortgage contact form and we will put you in touch with an experienced adviser from the SimplyFinance network who will search on your behalf to find the best mortgage deal available.