With record low interest rates, many borrowers and investors think that a low interest loan is automatic—all you have to do is walk into your favourite lender’s office and you will get record low rates that will make your life easier, as a homeowner or investor.
Unfortunately, you have more chance of Santa coming down your chimney than you do of getting the right loan for you and the best rates just by walking into your lender’s office. Here are your most common mistakes that loan-shoppers make.
Not Shopping for the Loan
As you have guessed, this is the most common mistake: not actually shopping, but taking the first offer. When you lock into one lender and ask for their “best rates,” they have no reason to do anything for you. There are a lot of different credit products out there; it is to your advantage to find the best ones for you.
No Due Diligence
It is somewhere between essential and mandatory that you compare home loans from different lenders and figure out which one best suits your needs. In the Rockingham, Baldivis and Kwinana areas, which are dominated by family homes, your needs may be different than if you were looking to invest in the Perth CBD. Make sure you have options.
Ignoring Small and Non-Bank Lenders
Many investors feel that a small lender or non-bank lender won’t be able to fulfil their needs. These people stick with the big banks. Sometimes a small lender will have more flexibility and more time to deliver great customer service than a larger lender. While larger banks offer a lot of great credit products and may very well be the right choice for you, you owe it to yourself to see what the “little guys” have to say.
Focusing on Rates Only
While the rate is the main factor in most loans, it shouldn’t be the only factor. In particular, investors may require more flexibility in their loans and should take other factors besides rates into consideration.
Not Calling Smartline Mortgage Brokers Rockingham
We have access to credit products from over 20 different lenders. We make it easy to do your due diligence. Call 0408 912 244 today.