5 Things to Look for in a Home Loan Provider
[The following is a post by guest author, Jared Bennett]
You are about to make one of the biggest financial decisions of your life, so it is important to look into this decision thoroughly and gain as much knowledge as possible before making the final commitment. There are so many lenders offering different interest rates and home loan features, searching for the right home loan provider can become an overwhelming experience and there are several things you must look for. For many borrowers, the interest rate offered is still a key feature.
What are your priorities
Decide upon the lifestyle and what type of home you want. Take into account your current situation and what the future may hold. Then you can decide what you want from a lender. This will make negotiating with a lender much easier and give you peace of mind.
It is crucial to shop around for the best interest rates. You can use comparison rates to navigate your way around the myriad of rates on offer by various lenders. The cheapest no frills interest rates might offer no flexibility with repayments and may have none of the features that come with other loans.
Look at loan features
Every home loan will come with different features. There are fixed rate, interest and principal, interest only and split loans just to name a few. These come with numerous features such as mortgage offset, a redraw facility, monthly fees, flexible repayment options and many other features. Loan features will need analysing to ascertain which home loan is offering the best deal for the borrower.
What type of lender do you want
There are many different types of lenders to choose from. As well as the big four banks, there are credit unions, smaller banks and specialty home loan lenders. All lenders are competitive and you will find a multitude of variations presented to entice you.
Reputation of the lender
Many lenders pour huge amounts of money into advertising. Their name will become familiar to you and therefore, their reputation becomes well known. It is important to look at whether lenders have achieved any awards for their home loan products and if they have gained industry recognition through their excellent service to customers. Talk to as many people as you can who have loans and find out their views on their lender.
Researching a home loan provider can be time consuming but it is always better to be diligent and do your homework. Reputable mortgage providers can supply you with a wealth of information in relation to choosing the right financial solution for you. Whether you are a first home buyer, buying an investment property or simply looking to upgrade your existing home, it is important to shop around for the best deal. Signing up for a loan for the next 25 to 30 years will have an impact on your lifestyle and the right decision at the outset will make for a smooth hassle free loan.