How to aim for a home loan – simplified. 

From getting your savings sorted to choosing the right loan for you. The process of purchasing a home should be exciting, not stress you out. See below tips to help you get started & stay on track:

Save save save!
Determine your end goal and reverse engineer how you will get there. Develop a savings plan within a time frame and work out the payments you can make on a regular basis. Throughout the home loan process, you will need to show real savings accumulated over at least a three-month period. Keeping in mind other debts such as credit cards and personal loans will reduce the amount you potentially can borrow, however you may be eligible for a government grant or concession.

Apply for pre-approval
Applying for pre-approval is not required however it will give you confidence to focus on properties within your budget. This will also provide you with better negotiating power. One thing to always remember is that your pre-approval is usually only valid for three months.

The interest rate is important
When deciding on a loan type, it is key to look at the interest only instead of principal and interest repayments. While interest only loans do not reduce the overall loan amount, they do result in lower monthly repayments. A shorter loan term for example 20 years, means higher repayments but you will pay less interest. A longer loan term such as 30 years, means lower repayments but you will pay more in interest.

For more information on home loans see the link below, they have great articles on everything you need to know!
https://lendingloop.com.au/

PerryCooper Property / Real Estate Agency Buderim / 0438 162 520