Thing to consider before you buy your homeSavings

What savings do you currently have?  Most lenders will want to see that you are able to save consistently and will usually require your last six months saving history prior to considering you for a loan.  If you are able to afford the repayments some lenders will loan you up to 95% of the property purchase price. This may even allow you to add mortgage insurance costs to the loan as well meaning you may be able  to borrow up to 97% of the property value.  However even in this situation the lender will require you to have at least 5% of the property value in genuine savings as well as enough money available to cover the other costs of purchasing a property. Sitting down with your Gorila Loans trusted mortgage professional they will ensure you know which options are available to you.

Current Financial Situation

What current debts do you have? The amount of current debts that you have will affect how much you can borrow.  You may want to consider reducing your current debts prior to purchasing your first home.

Lifestyle

Owning your own home should be an enjoyable experience not a financial burden.   You may wish to consider what concessions you are prepared to make to own your own home.  Think about how repayments on your new home will affect your current lifestyle   and whether borrowing to your maximum capacity will prevent you from doing things you enjoy.  You may wish to consider borrowing a smaller amount that you are completely comfortable with.  Talk to a mortgage professional about what you feel comfortable in repaying each month prior to making decisions about planning a family in the near future you may also want to consider how you will manage your repayments on just one salary.

Important information to consider is Pre-Approval and conditional Approval, which one matters Most???

A pre-approval home loan is stating that with the information you have provided the bank will give X amount and is only a guide until all the evidence and documents are verified. A pre-approval is to say yes but not 100%

A Conditional Approval is what you need before you start to think about a purchase, because the conditional approval is stating that with the evidence provided and documents and under those conditions they will give you a 100% approval because they have viewed the evidence and documents provided and the bank is happy to continue the transaction.

What is also very important is you must find out for what length of period the conditional approval is given, because some banks are valid for 3 months and others are for 6 months.

What is also very important is some banks call it different names, like approval in principle, so please ask your bank.

Gorila Loans will guide the client (YOU) through the WHOLE process of your journey from start to finish AND advise you which step to take and when for a smooth transaction and to have a stress free ending.