Monday, June 16, 2014

MORTGAGE CHECKLIST


Purchasing a home is a major financial decision for most people. You can empower yourself to make the right decision concerning mortgages with a bit of information.

1. Be prepared!

Familiarize and inform yourself with the product types available and how they meet your requirements.

2. Complete the correct paperwork

Assemble all the necessary documents ASAP to ensure your loan application can be approved quickly. Your lender needs time to assess your documents and conduct credit checks to ensure your suitability.

3. Honesty really is the best policy

If you are not upfront about your existing financial commitments you will only make it harder for yourself and increase the likelihood of long term heartache.

4. Will the loan meet your requirements?

A reputable lender can explain the benefits and features of diverse loan types – allowing you to compare products to meet your requirements.

5. Fees and charges

Ensure you are savvy with the fees that apply for the life of the loan. Consider the lender’s comparison rate – an independent calculation that recognizes all applicable fees and charges, enabling the comparison of similar products.

6. Pre-approval and the purchase

Once you’ve obtained loan pre-approval, you must:

Obtain a copy of the vendor’s contract of sale.
Have legal reviewing of the contract.
Organize a comprehensive building and property inspection.
Submit an offer to purchase the property.
Organize a property valuation and formal approval of your loan.
Pay the deposit (normally five to 10 per cent of purchase price) and exchange contracts.
Finalize mortgage documentation with your solicitor.
Establish building and contents insurance.
Upon settlement, get your keys and take possession of your new house.

7. Remember to ensure that your loan repayments are organized 

– and assess once again: does the loan suit your lifestyle and needs?


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