5 Key Qualities To Look For In A First Home Buyers Loan

Home financing is daunting for everyone, especially those who are in the market for a first home buyers loan. Finding the right home loan so you get the best deal possible can be a stressful and time-consuming process.

If you can find an advisor, it will help you stay organized and focused on the right things. Nonetheless, even though you’re new to this, it also helps to be at least faintly aware of what awaits you. On that note, here are some of the key qualities to look for in a first-home buyer’s package.

1. Favourable Interest Rates

This isn’t as important as it used to be, given that most lenders now offer fixed rates for at least two years. But if you’re looking for a variable-rate product, make sure you’re getting the best deal possible.

2. Fees and Charges

The cost of a home loan is not just the interest rate. The fees and charges involved can add up to as much as 1% of the loan amount. Even if the lender is transparent about expenses, it can be hard to figure out what to watch out for.

Application fees and valuation fees are common offenders that take buyers by surprise. Other things include insurance premiums and a variety of other charges. So, do your research and seek referrals if you can.

3. Repayment Flexibility

You’ll need plenty of time to repay your loan. So, look for products that allow you to make extra repayments without incurring any fees or penalties. Understand that a higher down payment can be beneficial in reducing your loan period. But that is only if you have the financial capacity to meet them.

4. Loan Features

The first home loan is a special type of loan. With it, you may have the freedom to choose your own loan features. So, make sure that you’re getting exactly what you need. This includes term length, repayment flexibility, and any other perks that come along with your home loan.

If you’re not sure what features are right for you, consult with a financial advisor. They can help you decide which features are most important to your financial situation and goals. The best lenders will extend services like counsellors, guides, and other resources for free.

You can access these online from the comfort of your couch. That might not seem like a pressing concern, but that only highlights the fact that you’re new to this industry. This brings us to the next point.

5. Customer Service

For lenders, ensuring customer service is everything. You may be able to get a lower interest rate with another lender. But for many applicants, great customer service is what makes and breaks a partnership, and for good reason.

Quite often, the worst thing about home loans is the stress and frustration. When you’re facing the process of buying a home, it can be hard enough to manage on your own. You don’t need additional stress from a lender who doesn’t care about your situation or is difficult to reach.

However, if you have someone who can guide you and keep in touch throughout, you’ll have fewer worries. That way, even freshman applicants can navigate this process with the ease of a pro.

In Closing

First home buyers loans are a great resource for those looking to invest in property. They can be a godsend, allowing you to take advantage of competitive rates while taking care of all the hassles. But, since you’re new to this, the process can be a minefield if you aren’t careful.

Even if all the signs point to a good loan, suppressing your instincts will cost you. Make sure that the lender is reputable, and you’ll need to be careful about what else they charge for. Have everything in writing before signing anything, and always keep your eyes open for hidden fees or clauses.