No Fee Home Loans: Understanding Fees and Negotiating with the Lender

Closing a home deal involves several fees on top of the financing. Title insurance, establishment and guarantee are some fees. Valuation, legal and LMI recovery are others. Before you speak with a lender, bulk up on your financial literacy. Going into the meeting with knowledge of the various fees allows you to negotiate them. You may qualify for no fee home loans. Here is some information about loan fees.

Fees are Administrative Costs

A home purchase involves several components and people. There are legal, insurance and valuation considerations. All these components involve people, and those people are getting paid. Therefore, mortgage fees are simply administrative costs. If you qualify for a particular loan or grant, it eliminates those fees. Our team covers these details with you.

Your Financial Situation

The Australian government instituted programs to help Australians purchase a home. First-time home buyers and the young are two groups who have the toughest time purchasing a home. Short employment history, new credit history and little to no down payment are some setbacks. On top of that, there are all the additional fees and financial requirements such as insurance. When you speak with a lender or a third-party, the representatives take a look at your finances. Since there are so many mortgage options, one is bound to be a good fit. If one does not, expect to make adjustments. Picking another home, waiting a few more months or finding a co-signer are some adjustments.

A lender looks over your financial situation and they assess the risk. Then, they pick out the home loans that best fit your financial fitness. Among those loans could be a few that forgive typical mortgage fees. 

No Fee Home Loans Conclusion

A starting point in the home financing process is working with our mortgage calculator. Some applicants qualify for no fee home loans. To find out if you are one, speak with one of our Mortgage House team members. They can walk you through a variety of options and let you know the fees that may be avoided.