Lending Options to Consider When Purchasing Your New House

Every year, millions of people around the world search the property market hoping to find their dream home. While some are looking to rent, others want to buy. Whether you’re shopping for your first property, or you’ve been through the process before, this article will discuss some of your main lending options. Don’t think that you’re stuck with just one option!

Mortgage Broker

Loans for my first house’ is a common search on Google, and one of the best answers comes in the shape of a mortgage broker. If you choose a broker with the right experience, they will sit down with you and come up with a plan to get you moving toward your dream home. For example, they’ll help choose the right loan product as well as the lender itself. Fortunately, the very best mortgage brokers stay with you until everything is signed on the dotted line. Therefore, you can be confident that it won’t fall apart at any stage.

Generally, brokers have contacts within the industry that help you get onto the property ladder (or take the next step!). With each lender offering a similar commission package, you won’t be forced into choosing one lender just to earn more commission for the broker. Why not get help from people who have been in the industry for many years?

Banks

For those who are more confident, you can contact a bank directly to get the ball rolling. Since this is the most traditional source of finance, you can arrange a meeting with a representative and discuss what you can afford. With various mortgage products, it’s important to research your options (or work with a mortgage broker to help!).

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Credit Union

If you belong to a credit union, another option could be to borrow from this rather than a bank. All credit unions are controlled by the members and many of them offer similar services to banks. As nonprofit ventures, you shouldn’t experience poor rates, and this should help with the repayment plan. However, two big problems exist with this solution:

  • Not every credit union offers enough funds to buy a property
  • You must be part of a credit union to enjoy the benefits

Although this won’t apply to everybody, it’s worth exploring alongside more traditional options like bank mortgages.

Friends/Family

Only a small percentage of the population can rely on friends and family to purchase a house for them outright, but perhaps your family can help in other ways. For example, can they contribute a portion of money so that you can offer a larger deposit? The larger the deposit, the lower the monthly payments. This does mean that you’ll pay the lender and your family back, but the latter won’t have high interest rates (hopefully).

With a loan from loved ones, you make the application process easier, and you reduce the borrowing burden in the long term.

Summary

If you’re looking to purchase a new house, one of the best things that you can do is contact a mortgage broker. With years of experience, they know exactly how the market works and how to avoid common mistakes. As well as helping you to find the right path, they will also guide you through the process and ensure that you get your dream home. Whichever route you choose, don’t rush into any decisions. Buying a property is a huge investment and the decisions you make now will stay with you for many years. Do all the right things and you won’t have to worry about property envy for a while!

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