One:

Not shopping around.

There are lenders falling over each other to win your business. It is usually only much later that you discover that you could have got a much better deal than the one you chose that has now cost you thousands. Don’t choose a lender for a home loan for the wrong reasons. No matter how rushed you feel, take the time to contact Lifesaver Home Loans. In no time we will give you lender options to consider which are almost always superior to any loan you can find by yourself. It is not uncommon that you may even end up with the same lender but with a better product or lower costs.

Two:

Not planning for your future needs.

Costs especially stamp duty on purchases associated with buying and selling property are extremely expensive, you don’t want to pay it all again in only a few years because you didn’t think ahead. When you buy a home you should consider how long you expect to be there for. Picture your needs at that time, (the number of bedrooms required, proximity to schools, public transport, work etc). If you think that you will be in the area for twenty years but will probably outgrow the house in five years then consider other options. Others may need to allow for their chicks to fly! In only a few years you may regret buying a house that is now too large or high maintenance for your new lifestyle.

Three:

Not borrowing enough at settlement.

We have all seen houses with sheets on the windows instead of curtains. Did the owners not qualify for more finance or simply not plan ahead? You should never borrow more than you can afford or borrow more than you need and then blow it on something, which you regret afterwards. What you should avoid is finding that you are short of funds at settlement or need some funds after settlement and be forced put it on a credit card or personal loan. Most lenders allow you to borrow extra funds and then put them back on the loan after settlement at no extra cost or charge. The money is then available to you if and when required.

Four:

Making or accepting verbal conditions.

The signed agreement between purchaser and vendor is binding. Any agreements between the parties should be specified here in writing to avoid misunderstandings later. For example, if you accepted only verbally that the seller would remove the three car bodies from the front yard before settlement and they now refuse, guess who will have to pay to get them removed later? Don’t assume. If the birdcage, above ground pool or your favourite plants are not part of the sale then specify it in the sale agreement.

Five:

Not reading contracts/signing blank forms.

You know what is right and wrong and what is smart and what is stupid; but buying, selling and refinancing can be a very stressful time. You are tired and probably trying to organize ten different things when someone suggests that you do what you know is wrong. Don’t do it!