There are a number of companies that will finance in Geelong, but how can you know which loan is right for you? Buying a home is often easily the largest purchase someone makes in their life. Sure, there are exceptions, mostly business owners, but for the average person who spends their time working a 9-5 job, their home is going to be the most expensive thing they buy. When you are talking about a loan this size, the small things can add up, so you need to make sure you choose the best loan for you. So, what should you be looking for?
Interest Rate
Right away, your interest rate is going to be one of the most important factors. A low-interest rate will save you thousands over the course of a loan. Even a single percentage point can add up. For example, a $100k loan over 30 years at 3% will end up being roughly $152k if paid perfectly on time. The same loan at 4% would be $172k. That is a difference of $20k for a single percentage point.
Fees
A low-interest rate can easily be negated by high administrative fees. Be sure to find out exactly what fees you can expect to be paying out of pocket and how much they are before you decide on a loan. If your loan officer will not disclose this information, then it is time to look elsewhere.
Payment Options
This one is not as important as the others but is still worth mentioning. You should check ahead of time and see what payment options are available. Some banks do not allow automatic bill pay while others make it difficult to get working. If this is something, you want to use see if your loan officer can give you a tutorial on how to set it up so you can be sure you will be able to without any trouble.
Conclusion
If you are buying your first home or a new home, you should always do your due diligence before signing anything. Remember, a single percentage point can be tens of thousands of dollars over the course of your loan. Call the friendly team of Archer Insurance at 03 8560 1555 today.
