Mentally preparing yourself for a home loan can be difficult. After all, this is debt on a scale you're unlikely to have experienced before. While purchasing cars and paying off student loans can be cumbersome, investing your time and money into a property will most likely be a life-long commitment.
Therefore, it's important to take your time and begin looking into the options available as soon as possible. Here are some tips to help you get ready for your real estate commitment.
Save a deposit
One of the first things you'll need to do as a property hopeful is save up a deposit. This is usually a minimum of 20 per cent of the property's overall value – although, naturally, the more you can save up initially the better in the long run.
Cutting back on some the luxuries of life might be in order, which could be a telling sign about your commitment to purchasing a home. If you find it difficult to save up for a deposit and make regular contributions to your savings account, imagine how it will be when you have mandatory, essential repayments to make each week?
Utilise an online calculator
There are a wide range of home loan calculators online that can be used to calculate the types of home loan you could be qualified for before approaching a lender for a consolation.
Utilising these services can help you get a ballpark figure regarding the amount of your home loan, as well as the size of your weekly repayments based on a number of factors – including your income and expenses. This will provide you with a decent idea about where you stand financially.
You can contact a Smartline Mortgage Adviser on 13 14 97 for home loan advice. Or complete our call request form and we'll call you!
DISCLAIMER: The information contained in this article is correct at the time of publishing and is subject to change. It is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Smartline recommends that you consider whether it is appropriate for your circumstances. Smartline recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.