If you are new to the property market and negotiating your first home buyer loan agreement, there are a few things you need to know before taking the plunge.

Beware the buying costs

There are signing costs you should be aware beforehand so that you can set up a budget and prepare for excess fees.

Stamp duty, legal fees and inspection charges are just a few of the costs associated with purchasing real estate.

The total amount of money you end up paying just to seal the deal can be quite substantial – and some of these fees could end up being a surprise, meaning that you need to set even more funds aside for ‘just-in-case’ scenarios.

If you do not account for these excess funds in your initial budget, chances are you will end up borrowing money from a different account or going into overdraft.

Read the fine print

If you have heard it once, you have heard it a thousand times – but that doesn’t make it any less true.

You need to read every line on your mortgage agreement. This piece of paper will determine the amount of repayments you will need to make each month for the next several years.

It will also dictate the terms of future negotiation, so make sure you set yourself up with favourable footings.

While you may be able to alter your agreement down the track, knowing exactly what you are getting into in the first place will make the decision to shift or modify your terms that much easier.

If you have trouble understanding the nitty gritty details, it would definitely be worth enlisting the help of a Trusted Mortgage Broker in your transactions.

Trusted Mortgage Broker has a great range of mortgage calculators to help with all those tough decisions that come with finding the right loan. Have a look at our calculators on our website to help you further. www.trustedmortgagebroker.com.au/calculators/

About the Author

Sue Hayter

Sue's service commitment is fantastic. At Trusted Mortgage Broker we work with our clients to ensure they understand their options, know exactly how much they can borrow and ensure they choose the right home loan and the right lender that is not unsuitable to their individual needs.

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