5 Things to Look for in a Home Loan Lender

Finding the right home loan lender isn’t always easy, however it is definitely worth the extra effort. Settling for the first one you encounter is something that you could really come to regret in the long term, and can end up costing you thousands. If you’re not sure where to start, here are 5 things you should look for in a home loan lender.

Flexibility

You want your lender to offer a flexible home loan that will fit in with your life, and give you the best value for money possible. Look for a loan with options that match your financial habits, such as the ability to pay extra every month and redraw when necessary. What you look for will depend on your personal circumstances, so spend some time deciding what you value most and why.

Low Fees

While it’s important to compare interest rates, many people overlook the fine print, and end up being stung by hidden fees and charges built into their home loan. When you are trying to find the right lender, make sure that you are completely aware of their fee schedule, and ask them about any charges that can be incurred throughout the duration of the loan. Doing your homework at this stage can literally save you thousands in the long term.

Good Reputation

A good reputation should always be one of the top considerations when you are looking to find a quality home loan lender. Speak to friends and family for personal recommendations, then spend some time online reading reviews to gain a more in depth picture. Forums are a great place to hear a range of opinions and to ask any important questions you may have in regards to choosing the right lender for your needs.

Favourable Approval Criteria

Some lenders are tougher than others, so it’s important to consider approval criteria when choosing the right home lender for you. Individuals who are self-employed, have unique employment circumstances or a blemished credit history can be excluded from many conventional home loans. If this is you, don’t despair as there are lenders out there who specialise in providing quality loans for your situation.

Long Term Benefits

Your home loan needs to work for you, so think about lenders which may offer more than just one simple service. Some banks offer discounts for customers who have their home loan, personal loans and bank accounts all with them, and this can result in serious savings over the long term. Another great benefit that some lenders offer is the ability to consolidate all of your existing debt into your home loan. This means you only have to focus on one simple monthly payment, often at a competitively low interest rate.

While it might seem like a lot of time and effort, finding the right home loan lender to suit your needs is essential to your future financial success. Having a lender that is flexible, offers great value and understands your circumstances makes your home loan experience a much more positive one.