5 Things You Mustn’t Stop doing as Your Mortgage Your Home

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5 Things You Mustn’t Stop doing as Your Mortgage Your Home

Interest rates on mortgages are expected to rise in 2016 and beyond. Some banks are reducing or cutting the rates down, but this won’t have too much influence on the general trajectory the mortgages take. Mortgaging a home can take several years. In fact, you might finish mortgaging the home when all your children have finished college and have started their families. Despite this, you should not abandon doing the following while mortgaging the home:

Boosting your credit worthiness

Lenders value your credit worthiness. They want to see whether you’re worth giving access to the credit facilities, which you need to mortgage your home successfully. Therefore, use every opportunity you get to improve your credit worthiness. This involves paying your dues on time and settling all outstanding dues. Avoid taking credit when you have the money needed to buy an item or pay for a service in cash. This way, you reduce your risks of defaulting.  

Set money aside for making down payments

Setting money aside for making down payments is a good habit that you should develop while mortgaging your home. In fact, you should form this habit before you begin mortgaging the home. A down payment of around 20 percent is the norm. However, most lenders have no trouble asking you for a down payment of around 3 percent. Approach the lender confidently with the money you saved for a down payment and see your request for a mortgage, win approval.

Seek pre-approval

Obtaining pre-approval should be your priority before you begin house hunting. Pre-approval simply allows the lender to evaluate the money you qualify to borrow based on the kind of home you wish to buy and live in with your family. Pre-approval opens your eyes to more possibilities you never imagined were possible. Pre-approval helps you to plan and budget or make adjustments based on the kind of house you wish to buy.

Search for legitimate and reputable lenders

Today, the number of lenders operating in the mortgage industry has grown exponentially, thus making it hard to choose the right one for you. Base the choice of lenders for your needs. If you do this, you will end up with some very good interest rates. The rates the lender gives you will not hurt your finances. Spend time asking various lenders for estimates of the mortgages and loans you wish to take. Choose the most suitable lender for you.

Research different types of mortgages

The market is full of the various types of mortgages. Knowing what you want before going for it is highly advisable. Set time aside for research on what’s on the market. Choose a mortgage facility that suits your needs perfectly. If you do this, you will have no reason for worrying about getting the most out of the mortgage. Moreover, the loan will help you address all your needs as well as requirements. The different types of mortgages you can choose can include:

  • Refinancing existing loans
  • Variable rate mortgages
  • Fixed rate mortgages
  • Interest only mortgages
  • Construction mortgages
  • SMSF mortgages
  • Low doc mortgages
  • Reverse mortgages
  • Bridging mortgages

Therefore, get a finance broker in Perth to help you choose the best mortgage.

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