getting mortgage loan

For many, owning a home is part of the ultimate dream. For first-time home buyers in Australia, getting the right mortgage is one of the most important steps in realizing the dream. Applying for a mortgage, however, is easier said than done. 

The mere prospect of homeownership compels you to prepare extensively, especially since monthly payments also encompass utility bills and other living expenses. It’s vital to only enter homeownership when you’re financially stable, as previously emphasized in part one of this mini-series.

To help you further support your decision-making process, here is part two of our mortgage guide. Take these tips into consideration to ensure your application gets approved:

Tip #4: Look beyond the rates given 

As a first time buyer, you’re more inclined to save on costs rather than splurge. Your instincts will tell you to find the cheapest mortgage rates available in the market, but your choice should go beyond just these numbers. Keep in mind that mortgage loans aren’t structured the same, and the rates you can afford can be influenced by multiple factors, including the following:

  • The amount of loan you wish to apply for
  • Your credit score and history
  • The home loan’s features
  • Funding models
  • Lender

Again, low interest rates may be tempting, but it will be easier to get approved by the right lender and the proper product for your needs. Remember that the right one will ask you detailed questions, all of which are designed to gauge your current financial situation. Simply put, you’ll be guided towards the right mortgage. And when you’re well suited to the loan, you’ll have a greater chance of getting approved.

Tip #5: Keep everything realistic 

You’re more than excited to find the right home, apply for a home loan, and move in—but make sure to keep things realistic. The world is still coping with the disruptions caused by COVID-19, and this means processes will be more difficult and challenging. Expect to experience more stringent compliance requirements, especially when it comes to pre-approvals. 

Patience will be a necessity, so never make any rash decisions—such as moving out or selling your things. More importantly, never rush the mortgage loan process. If you want to get approved on your first try, make sure to communicate with your chosen lender well in advance. Scrutinise their offers. In such unprecedented times, slow but sure steps will get you to where you want to be.

The Bottom Line

Securing a mortgage approval is a complex process, one that needs ample preparation and succinct knowledge. You’ll need proper guidance and thorough research, so trust the process before diving in head-first. You’ll want to secure the right mortgage loan fitting your situation—which is the best way to get your first mortgage loan done right.

For the best home loans in Sydney, Wealthy You has you covered. We have been servicing Australian clients as a mortgage company for decades, ensuring that they have access to the right mortgage loans designed to meet their needs. We’ll make financing simple and easy for you, too—reach out today.