A mortgage is a lien on a property/house that secures a loan and is paid in instalments over a set period of time. The mortgage secures your promise that you’ll repay the money you’ve borrowed to buy your home. Mortgages come in many different shapes and sizes, each with its own advantages and disadvantages. Make sure you select the mortgage that is right for you, your future plans, and your financial situation.
Responsibilities that come with a mortgage
Buying a home is a big step and assuming a mortgage for that home is a big responsibility. Make sure you are ready for a financial commitment that could last several decades.
· Are you currently in a financial position to comfortably make the monthly mortgage payment?
· Do you have a financial cushion in case you have sudden financial difficulties (for example losing your job)?
· Are you prepared to take on a long-term financial debt?
· What will happen if you default on the mortgage repayments?
Owning a home has many benefits but it also has responsibilities. Be sure you are in a position to handle those responsibilities. If you don’t think you are in the position to take on such a large financial debt, this may not be the time to buy a home. Instead, focus on getting your affairs in order and building a financial cushion so you can buy a home in the future. Taking the time before buying a home to make sure you are set up for success can alleviate much stress and many problems later.
Choosing the right mortgage
Once you decide on the mortgage you want, do your homework. Different lenders offer different rates, points, and fees. Ask around and compare. Understanding the benefits of different mortgage offerings can be a complex process. How do you figure it all out?
I was talking with our Mortgage Express team today regarding the deposits needed to secure a mortgage loan. And it seems to me that there is a common misconception about that you can’t get a mortgage without 20% firm deposit. This doesn’t seem to be the case. This is what Tracey had to say to me.
“The lenders have definitely “toughened up” on criteria of late. In the news recently there was word that you need at least 20% equity or deposit to purchase a house. This is not the case with every lender. We have lenders that will still consider a loan of up to 90%, meaning a minimum of 10% deposit is required.
However, if you have clients who are on good incomes and the ability to reduce debt in the short term, but don’t quite have the 10% deposit, we still may be able to help them. We have some lenders that could consider approving a loan over a shorter term.
Hope this helps, the best advice for your clients is to speak to a Mortgage Express Broker.
We can approach the lenders on your clients behalf and go back to them with the best finance option for them.
Lending criteria changes all the time so the best thing to do is shop around and talk to a mortgage broker when you’re ready to get a mortgage.“
The thing is it seems you need to shop around to get the deals. You do this when buying a property with some buyers looking at hundreds of properties before buying but when asked about their finances they say
“the bank will loan us this amount”. And they haven’t even been out to see if there is a better deal out there. Don’t be burnt by your bank. It can cost you more than realise.
Mortgage Express is a company that works in conjunction with Harcourts and specialise in brokering dealson behalf of you. The use of their service doesn’t cost you anything but can save you awhole heap in unnecessary costs from the bank. The ladies in New Plymouth are brilliant to deal with. They have great skills and deal with the lenders on a direct path on your behalf and cut out all the iffy biffy stuff so you just get the deal. The cost out for you how much it will cost how long the term is and can explain any questions you have in setting up a loan. They can also help you refinance your existing loan if it’s costing you too much.
If you have any mortgage questions or queries I would talk to mortgage broker. They work hard on your behalf and are an invaluable asset to have working for you. They can save you heaps of money and the best thing is they don’t cost you a thing to use.
The ladies in New Plymouth include Tracey McEldowney, Kerry Kelly and Lisa Weston who I highly recommend to work with you in securing your home loan. They make the whole process as stress free as possible.