Choosing the right mortgage lender can be just as important as choosing the right kind of home loan. With the many lenders nowadays eager to accept your loan application, choosing which mortgage lender to go with can be difficult.
Just because a lender is willing to approve your loan, it doesn’t necessarily mean that’s the right deal for you. So to make sure you’re choosing the right mortgage lender, here’s a few things to consider:
Organise your financial documents
With the necessary financial documents in place, it will be easier to go through the home loan application process. This could also mean you’ll have more options when choosing a mortgage lender. You can start organising your documents by collecting proof of your income, debts, and assets.
Make sure that you have a good credit report by paying off your debts on time. Have your recent payslips for at least three months. Have a list of your debts ready including your balances owed and account numbers. And lastly, make a list of your assets such as your savings and checking accounts, investment accounts, and possessions such as cars.
Compare mortgage lenders
Comparing lenders is the starting point when choosing the right mortgage lender. You can compare their interest rates, home loan fees, and customer service options. A home loan calculator can be a useful tool when comparing several lenders' interest rates, loan terms, and ongoing fees.
Know what kind of mortgage you want
Not all lenders can offer the features you need for your home loan. Some may not allow you to have an offset account, interest-only repayments, or a redraw facility option. Make sure you know what kind of mortgage you are looking for, so it’s easier to pick a home loan lender.
Know the requirements and read the fine print
Every home loan lender has different requirements. Finding out about the requirements and the necessary documents can save you time in the home loan process. Also, interest rates shouldn’t be your only concern when choosing a mortgage lender. You should pay close attention to the fine print on all the documents.
Taking out a home loan is a big financial responsibility, so make sure that you do your own background research before signing up with a mortgage lender. That way you will know you are getting a loan that is good value and suitable for your needs.