Financial Planning Do’s and Don’ts
When you start looking into buying your own property and considering mortgage rates, you’re going to want to do a bit of financial planning to really get a feel for what you’ll be working with. Writing up an official financial plan and discussing it with a lender or with a financial planner is an important step, but that doesn’t mean there won’t be some potential pitfalls. To help avoid the possibility of disaster, it is important to be honest with your planning and determine it based on what you already know rather than making broad guesses.
But what should you know before you sit down to start up your plans?
You never want to base your financial plans off of what-ifs. It is of course important to factor in possibilities, but never plan for something that you aren’t sure is going to happen. You shouldn’t overestimate the money you’ll be bringing in or the time you’ll take to repay your loan. During the process, you are free and welcome to try to boost your income and work on bettering your financial situation, but that does not mean it is something to bet on.
Don’t trust a broker that isn’t going to be upfront with you. Your broker should be willing to give you all of the information you need about repayment schedules, fees, and interest rates, without withholding anything. If there is a suspicious lack of communication or paperwork, it is time to duck out and find someone new.
Have official financial planning documentation. One of the worst things you can do is leave everything loose or not taking the time to write everything down. You can’t keep track of things if it is nowhere to be found.
Do your research. That sounds like such a simple thing to do, but many people don’t bother to do any research on mortgages or lenders before diving right in. Knowing the terms and jargon you’ll need to effectively get your mortgage and communicate with your broker is very important. It is easy to be taken advantage of if you don’t know what you’re discussing.
Find a lender you trust. At Mortgage House Australia, we pride ourselves on giving our borrowers our all and ensuring their utmost comfort with their loan experience. We want to communicate with you effectively and clearly so nothing is left up to questioning. We want to help you better your financial future so it isn’t left up to chance.
Because when it comes to your financial security, nothing is better left unsaid.
At Mortgage House, we’re no strangers to the homeowner’s journey. It’s an exciting and very rewarding one. If you’re thinking of applying for a home loan, you can Apply Online today to get started!