Once you decide it is time to buy a home, or buy another property, you will begin the task of working out your budget and talking to your lender about how much you can borrow. Yes, this is the burning question, how much can you borrow?
It would be unwise to start looking at property in Macquarie before you have the answer to this question as doing so could result in the sad news that you can’t afford what you have fallen in love with.
The smart thing to do is to find out how much you can borrow and go from there. Each individual has different circumstances regarding their income of course and not everyone earns the same salary.
Various factors come into play when you speak to a lender and one lender is not the same as another. It is all a matter of doing your homework and shopping around to see who can offer you what you need.
What portion of the purchase price can be borrowed?
The first items that should be taken into consideration are your existing debts and these will affect your borrowing power. You also need to consider the asking price compared to your income and also the bank valuation of the property in Macquarie.
Provided you are able to make the repayments, some banks may lend you up to as much as 95% of the price. This is ideal for those who do not have a hefty deposit to put down, although it is good to remember that any loans that are higher than 80% of the price need to be covered with mortgage insurance, which is for your cost.
Choosing the right lender
As mentioned, there are many lenders with different loans available. The good news about this is that there are so many variables that loans can be tailor-made to suit most situations.
On the downside, all the information can seem quite daunting and confusing. Do you want a variable rate, a fixed or split rate? Do you understand all the financial terms that are being thrown at you? Do you really understand what you are signing?
The professionals can help
Prudential Real Estate is by far the most professional real estate company. Although they do not provide you with the actual loan, they have been party to so many home purchases, that they understand much of what goes on in this area.
They also have their own mortgage broker ready to answer any of your questions in a way that you will understand. His experience and knowledge of the industry will ensure that you have a clear understanding of what you can borrow a lot sooner.
Visit Prudential Real Estate online at www.prudential.com.au to check out their home loan calculator and details for Craig Corbett to discuss how much you can borrow.