Can Home Loan Offers Get Me My Dream House?
Are you living in a house that’s not quite giving you the happiness and quality of living you want for yourself and your family? If the answer is yes, then it’s time to make a change. Research shows that owning your own home, especially one that you’re happy with, can lead to improved levels of emotional, social, and financial health. But many Australians believe that their dream house is just an unattainable goal. The truth, however, is that it can be easy enough to finance your dream home with the right home loan offers.
What You Need to Know About Home Loan Offers
Banks and lenders offer a number of different loan types, and they all serve the purpose of making large expenses more manageable to pay. The home loan is one such product and it’s focused on financing your house purchase, construction, or renovation.
With home loans, you typically have to pay back the value you borrowed plus interest — but there are zero-interest loans too! As long as you complete your payment within the period specified by the bank or lending company, you may not even have to pay any interest at all.
But loans do require you to fulfil your end of the agreement, which is why it’s important to carefully assess your needs and your financial capability before you make any big decisions.
To find out if you’re ready to take out a home loan, there are some tough questions you should ask yourself first:
- Can you comfortably afford the monthly mortgage payment?
- Is your credit score in order?
- Have you saved up for the down payment, furnishings, and upgrades?
Even if you can’t answer yes to all these questions, it doesn’t mean you’re stuck. Talking to a professional mortgage broker can reveal other financing or refinancing options that are within your capacity and comfort level to pay.
A broker can also tell you if your new mortgage qualifies for a cashback, which is a percentage of the loan value that the bank will deposit to your account for you to do as you please.
Qualifying for Home Loans
You don’t need perfect credit to get your dream house, but it does need to be at a certain level so you can increase your odds of getting approved.
Your credit score is also a key determining factor for your home downpayment. The better your history of making payments, the lower the downpayment tends to be.
Tips on How to Check Your Payment Capacity
The first and most obvious step you should take before jumping on home loan offers is to find out if your income can handle the payments. There are many tools to help you find out, such as the Debt-to-Income Ratio, or DTI.
You can also use a borrowing capacity calculator to get an estimate of how much you will be paying monthly, as well as the value you can get from a lender based on your current financial health.
If the numbers don’t look too good, again, don’t be so quick to dump the idea altogether. You have a good chance of getting the best home loans by letting a mortgage broker fight for better deals. Their experience and established trust with banks and lenders can be your ticket to getting your dream home.
Other Things to Consider
- You’re not moving away anytime soon
- Your overall expenses to rent are higher than the cost of owning a house over a long period (5 years or more)
- You’re able to make home repairs to save money
- You have kids or kids on the way
- You’ve been steadily employed for at least 2 years
Home loan offers can make it possible for you to own the house of your dreams. But it’s not just about the loan or the house; it’s also about you. If you feel you’re ready for everything that comes with a loan agreement, then take that step. There really is no substitute for the satisfaction and pride of owning your own property.