When you are thinking of getting home loans Perth, the first question you want to ask to your mortgage broker Perth is “How much you can borrow?” after all, having the fund to help you purchase your dream home is the main reason of getting a loan in the first place.
It is a bit obvious that before buying a home, you should work out exactly how much you have to spend and how much you can borrow. This means taking a good look at your monthly income, other financial obligations and savings as well as getting a preapproval on home loans Perth of your choice.
How much you will be able to borrow depends on three factors:
Obviously your income is the most important factor in determining how much you can borrow. This means you can comfortably make the monthly payments and by the mortgage brokers Perth definition, “comfortably” means your payments is no more than 30% of your gross income per month.
Add the other home-owner costs like repairs, insurance, strata fees and home bills the expense should not exceed more than 40% of you annual gross salary.
Other Financial Commitments
Your mortgage brokers Perth professional will also ask about your other financial obligations. It is because lenders will also take into account your credit card and HECS debt and calculate how much you can afford to pay after summing up all these.
Deposit and Savings
If you are buying your first home, you need your savings to pay the 10% of the cost of the property upfront and to avoid Lender Mortgage Insurance (LMI) you will need to pay 20%.
But other than this, your mortgage broker Perth will tell you that your savings and deposit is not that important. Lenders are more interested in your capability to pay now and in the future.
There are still many things you have to go through before applying for home loans Perth and getting professional help from trusted mortgage brokers Perth could help you make a more informed decision.
Call the most reliable mortgage brokers Perth and know more about home loans Perth at (08) 9527 1800 or log on to http://www.themortgagegalleryrockingham.com.au/