Getting a Home Loan: How Much Money Can I Borrow?
One of the first steps towards getting a home loan and buying a property is understanding how much you can borrow, writes Adelaide finance broker Dom Cassisi.
You’re probably very excited to consider buying your home!
You know that you’ll need a loan to make the dream a reality. But before you dive headfirst into the world of borrowing, you need to consider some fundamental information.
First of all, you need to ascertain in advance how much you can afford to borrow. Most lenders and financial advisers provide online calculators for you to find a rough estimate based upon your current situation. The best way to get customised results, however, is to visit a financial broker in person.
Next, what deposit should you put down? The more, the better! A larger deposit will open up a wider range of loan options to choose from. A large deposit will help you to negotiate a lower interest rate with the lenders and enable you to pay off your loan even sooner.
Finally, think about how a pre-approval loan can affect your situation. Pre-approval is much easier and faster to obtain than a regular loan. It sets boundaries for your spending limits, allowing you to shop with a focus on only what you can afford. Additionally, a formal pre-approval loan is required for you to bid in an auction.
The next question:
How do I choose a loan that's right for me?
Did you know that there are hundreds of different home loan products available? These differing loans and their varied features are meant to address the needs of individual circumstances. Getting familiar with some of these loans and these features will give you an idea of the main options you should choose from.
A Funding Options broker will introduce you to a range of options that best suit your situation. You’ll also receive a comprehensive breakdown of the features of such options. This empowers you to make an informed decision.
How often should I make home loan repayments?
Most lenders offer flexible repayment options to suit your pay cycle. Aim for weekly or fortnightly repayments, as opposed to monthly. This means you will make more payments in a year. The more individual payments you make, the more money you will save and the faster you can pay off your loan.
So, what next?
Find out more about your loan options by contacting Funding Options for a no-obligation discussion.
By choosing Funding Options to guide you through the loan selection process, you can enjoy the convenience of consultations in the office or in the comfort of your own home. Give us a call on (08) 8366 0822 or send an email.