How To Get The Best Deal On Your First Mortgage

by Pam on April 13, 2016

getting the right mortgage for youGetting your first mortgage can seem like an exciting time. You’re finally purchasing a home for your family, and that’s cause for celebration. However, it’s important you take action to ensure you get the best deal possible. Believe it or not, people can pay varying amounts of interest each month for the same loan. So, you’ll want to take note of some of the advice in this article if you hope to keep as much cash in your accounts as possible. Thankfully, the process is not complicated, and you just need to follow the right path.

Save the largest deposit possible

It stands to reason that obtaining a large deposit will mean you get a better deal on your mortgage. The guys at http://onproperty.com.au/ and other relevant sites offer some great advice on the subject. You won’t have to borrow as much money, and so your monthly payments should decrease. In an ideal world, you should try to set aside around 10% to 20% of the total cost of the home. If you do that, your loan will only have to cover the remaining 80%. That could mean the difference between paying $500 per month or $400. You could spend that extra cash on home renovations or better holidays with your family.

Use a broker

There are many mortgage brokers you could contact to find the most lucrative deals when purchasing a home. The experts over at http://mortgagemasters.com.au/ and similar sites say most people follow that path. You just need to search online for professionals who focus on your chosen location. Research shows that buyers who use a broker could save as much as 15% over the course of their loan period. Again, that’s money you could use to update the property and make a profit when you decide to sell. Different brokers will ask for varying fees, and so you need to shop around.

Improve your credit score

Most people don’t realize it, but your credit score often determines the level of interest you pay on a mortgage loan. So, it makes sense for you to improve your score as soon as possible. If you’ve experiences financial issues in the past, you might have to apply for credit cards and other forms of lending. Use them on a monthly basis, and make sure you pay the balances in full. With a bit of luck, that should help to boost your rating and increase confidence in your ability to pay the money back. Lenders who think you’re likely to miss payments will never offer the best deals.

Those simple techniques should make sure you don’t pay over the odds for your first mortgage. The only other thing you might like to consider relates to guarantors. If you have a poor credit rating, it’s sometimes possible to get better deals if someone else signs on your behalf. Just make sure you never miss a payment because that person will become responsible for paying the debt. The last thing you want is for your parents to have to sell their home because you lost your job or something similar. However, sometimes it’s the best way to get the money you need at the right price.

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