When it comes to purchasing property and home mortgages, more often than not, you’ll have to utilize a mortgage loan provider to get the sale across the line. This will be useful even if you have enough for a down payment, as you still need to have funds for the lifetime cost.
Different Types Of Mortgages And Loans
There are a number of different loans available, from conventional mortgages, which are the most classic, to jumbo loans. Jumbo loans offer buyers the chance to afford luxury homes that may have been out of their budget and thoughts previously.
There are also government backed first home buyer mortgages available to those who have never gotten onto the property ladder before. They offer competitive rates and often subsidize fees to get them started.
Knowing The Costs Involved In Obtaining A Home Mortgage
When it comes to home mortgages, there are three primary costs involved in the entire process. They are down payments, monthly payments and closing costs. Some will be more costly and impactful than the other, but all are relevant.
Firstly, there is the down payment. This refers to the amount you pay towards your new home at the beginning. Usually, this is around 5%-20% of the total value of the property. So, if you’re buying a home for $200,000 at a 20% rate, you will need to pay $40,000 at the start. Paying off a higher amount towards your down payment will mean you have less monthly mortgage rates to pay.
Secondly, and the most important, is the monthly mortgage amount. The amount you pay will be determined by how much of a loan you took out from your provider. The usual amount of time a contract will be made for is between 15 and 30 years. The longer the time, the less the monthly costs will be, due to being more spread out. Be aware that this will cost more overall, due to the longer time of interest being applied.
Thirdly, there are closing costs. These costs refer to the fees and expenses paid to realtors and sellers to confirm transfer. They could include insurance, attorney fees, appraisals and general taxing. The costs could run anywhere from 3%-5% of the loan, depending on the total cost of the sale.
To work out how much your new home purchase could cost, you should use The Home Loan Expert’s loan calculator, to help you plan your future purchase and get your finances in order. They can tell you the estimated cost over your fixed term, and also talk you through the different mortgage loans you’re eligible for.
Tips For Viewing Properties
The furniture and fittings within a home aren’t too important to consider when viewing a home, especially if all that furniture is going with the seller. You should focus your attention onto the structure itself. For example, look at the roof, to see if it is strong enough or If will be costly to repair in the near future.
Don’t be afraid to get stuck into viewing a home. Afterall, you’re planning to purchase a home, and you will most likely live there for a long time, so test all the taps and feel the walls for any dampness, before investing your money.