OK – so you are thinking about buying your own home. It’s almost as if it’s the expected behaviour once you reach adulthood. The debate around whether or not it’s a good idea will go on for ages, but the fact of the matter is that many people have no clue about how to start the whole process.
In the past, you would likely have gone into your bank and asked to speak to someone about a home loan. Just like you did when you needed your first credit card, personal loan, car loan, etc. It seems that once you start a relationship with a financial institution, they become the port of call for all future financial enquiries. Is this a good approach? Well that depends on whether or not you consider purchasing a home to be a big decision. If you think it is, and most people tend to view it as such, then doing no research or investigation into the home loan market, other than listening to the bloke at the bank, is probably not the best approach.
Step 1 in searching for a home loan should always be about education. Get informed. Understand what kinds of loans exist. Understand where you can get home loans from. Understand the differences. Understand the similarities. Understand the features. If you don’t at least do this, then you will find it very difficult to ensure you have the right home loan for your needs.
Learning about home loans might sound difficult but it really is not. If you are reading this blog post then you already understand about the internet and know how to use it. Well, just apply some simple internet searching skills and you will find a wealth of information available to assist you. As always, some of it is better (simpler and easier to understand) than others, but within about an hour, you should have a very good feel for what you need.
MyRate reviews our education centre on a regular basis. We think it’s a pretty decent collection of information to help you on your way. And as always, to review our site requires no commitment to our products. So we think it makes a pretty good starting point.
Step 2 would be to filter the information you have gathered. After searching online and chatting to friends and family, you will likely have too much information and conflicting opinions. This is inevitable, but you will likely have a “feel” for the way you want to proceed. Your decision may be to go with your bank… or to speak to a mortgage broker… or to go direct to achieve bigger savings.
Whatever you decide, at least make sure you understand why you chose that path. The more you know about the options, the better positioned you are to get the best home loan for you.