Getting a low rate home loan is always a tricky affair anywhere in the world and Australia is no exception. Thus, if you are looking forward to acquiring a low rate home loan in Sydney, Perth, Brisbane, or anywhere else in Australia, you need to be cautious. You must not commit any mistakes that may make things further complicated for you.
Not Getting Pre-approval Before Bidding for the Loan
Before bidding for the loan, you need to organise a home loan pre-approval or at the most, a conditional pre-approval. Not doing that will be extremely risky. This will put you in an extremely precarious situation and will stop you from acquiring the loan. Thus, you must organise the home loan finance at least 3 to 4 weeks beforehand. When you give yourself sufficient lead time between the application and the bidding, it will help you get a secured formal approval.
Not Getting Familiar with Credit History
Credit history is the first and foremost thing that your creditor will look for while assessing your loan application. If you have a poor credit history, like instances of deferring and defaulting on any existing loan, if you have missing repayments against your name, you will be considered as a potential risk in the books of the creditor offering a home loan in Perth.
Reporting Income and Expenditure Inaccurately
Lenders would use these two parameters while assessing your borrowing power and determining whether you will be able to pay back the loan. Thus, when you overestimate your family income or underestimate your expenses, this will result in the cancellation of the application. And in the worst-case scenario, the lender offering a home loan in Cannington or elsewhere can even lodge a complaint against you, leading to hefty penalties.
Not Conducting Enough Research on the Rates
There are a number of buyers who would resort to applying for a home loan with their bank as it makes them feel at ease. But it will deny them the best and the lowest rates of interest. There may be creditors offering low rate home loans in Sydney at better terms and conditions than the banks.
Applying for the Home Loan Solely Based on Interest Rate
It is pretty important to conduct thorough research on various options for home loans. It is also important to remember that though the lenders promote loans at the lowest rates to lure potential borrowers, the rate might be applicable for those with a low loan-to-value ratio of LVR and on only selected loan mortgage products. Therefore you need to get things straight and clear, while you look for low rate home loans in Brisbane or your location of residence.
Not Getting Into a Well-documented Agreement in Writing
When it comes to taking a loan, never make the mistake of borrowing from a company that does not have a well-structured and well-documented agreement in place. This ensures you have no dicey point to be skeptical about when it comes to paying the loan back.
This is where putting stakes on us at Everyone Finance will keep you safe and secure on every front. Call us at 08 6102 8600 for further details.