Top considerations before applying for a home loan
If you’re an aspiring home owner, applying for a home loan is one of the most important financial decisions you’ll ever make. A mortgage is a long-term investment that you’ll likely be paying over the next 30-40 years so it pays to get it right from day one.
Taking an informed decision is the best approach to get a home loan and we’d like to help you out in taking a home loan which fits your lifestyle. Here are some key considerations you should keep in mind.
- The total cost of a home loan over your repayment term
- Monthly repayment figures and flexibility
- Current interest rate and potential future changes
- External costs such as notary fees
- Property running cost
The prime consideration with any borrowing is the repayment. We will only lend you the amount you can comfortably pay back, but it’s important for you to already know how much you can borrow safely before beginning your house hunt. Not only does it help manage expectations with respect of property, it also ensures you’re comfortable for other living expenses.
What if you’re unsure about your future?
We understand that there’s no way of predicting what you’ll be doing in the future, but there are some considerations that you need to keep in mind when discussing your home loan plan with APS. Are you planning to start a family? Planning to change careers? Go back to school? Take a lower paying job to improve your way of life? All these points will affect your future income and it’s important to bring them up whilst discussing a home loan.
Watch for fees
There are many costs involved in home buying, with fees being a large part of them. APS Bank doesn’t charge processing fees, legal fees, architect fees or early repayment fees, but other lenders might. Read the small print carefully before signing the loan agreement. It could save you a lot of money in the long run!