Avoid These Mistakes When Applying For Home Loans In Byron BayAs a long-term financial commitment, applying for a home loan needs thought and strategy. Borrowing without doing enough research might be detrimental to your financial well-being. As a first-time homebuyer, navigating the property market may be daunting, and the prospect of making a mistake with such a significant investment can be very stressful.
Australia’s highly sought after tourist mecca, Byron Bay, has become one of the country’s most expensive places to live, so the sense of awareness that comes with obtaining a mortgage needs to be fine-tuned. When applying for home loans in Byron Bay, be sure to avoid making these mistakes:
Not Reviewing Your Credit Score
A credit file with a lot of activity, or one that contains an excessive number of defaults or judgements, might present a significant obstacle in securing the loan you need. A solid credit score is a prerequisite for qualifying for any loan. Higher credit scores earn lower interest rates. Credit bureaus provide easy-to-download credit reports. It is good practice to check your credit records at regular intervals to allow sufficient time to take corrective measures to improve your credit score and review any inconsistencies or outdated information.
Not Building A Complete Picture Of The Region You Are Moving To
Before setting your heart on a particular region or neighbourhood, it is important to have built a complete picture of what it is like to live there by considering the cost of living, the lifestyle offered and how it may be compatible with you and your family.
Byron Bay is a town filled with art, live music performances, organic markets and dazzling ocean views. Everywhere you walk puts you a short distance from the ocean; it is a perfect place to pick up a surfboard and head to the beach.
This popular tourist destination is home to just over 5000 inhabitants, but this number almost triples during peak tourist seasons. Despite the relaxed lifestyle, the cost of living in Byron Bay is considered high ‒ the 6th highest in Australia ‒ as is to be expected for a town that runs on tourism. All of which should factor into your decision-making processes as a home buyer.
Overestimating Monthly Repayment Affordability
Onet common error is not including monthly costs when estimating repayment ability. For most loans, the lenders consider your monthly responsibilities. If the cost of living is already high, committing to a high fixed monthly repayment is very likely to cause financial strain. Fixed monthly repayments should not exceed 30%-40% of your salary. Before applying for a home loan, it is imperative to evaluate your current financial status. This will affect the price point of the properties you should be looking at and the size of the loan you take.
Failing To Seek A Mortgage Broker’s Advice
If you need assistance sorting through loan possibilities, determining the best interest rates or conquering complex borrowing issues, this is where a mortgage broker comes in. While it is possible to shop around independently for a home loan, a mortgage broker operates as a matchmaker, connecting you with the best lender for your unique circumstances.
A mortgage broker will provide insight into the size of the home you can afford and the likelihood of loan approval. A broker can assist buyers who face financial difficulties, like less-than-perfect credit or intermittent income. Brokers often have well-established relationships with lenders, which can assist in identifying the best available loans and pricing.
Most importantly, you are guaranteed to avoid costly errors by having an industry professional’s advice, knowledge and guidance in the mortgage and property market.
Look No Further
Rated one of the top 10 Mortgage Brokers in Australia for 2021, ZEP Finance is a financial services provider specialising in residential mortgages. We have accreditation with over 30 banks, credit unions and different financial institutions, providing more flexibility and choice when selecting the right loan for you.
Together we can work on securing suitable and affordable home loans. So Byron Bay, with its idyllic beaches, one-of-a-kind retail and dining experiences, world-class festivals and vibrant community spirit, can become a dream turned reality for you as a prospective homeowner. Contact us today: email@example.com.