In a previous article, we discussed a few things that confuse first home buyers. Here are a few more things that cause confusion and trouble for them.
For most first home buyers, the process of applying for a mortgage can be quite confusing. However, some of them start having trouble right from the beginning where they have to find the right lender and the right type of mortgage. Instead of wasting precious time and energy to find a mortgage lender to suit your needs, you can consult with someone whose job is to find mortgages and lenders for clients just like you! A broker’s help can be incredibly valuable for a first home owner. They are well aware of the real estate market in their area, different loan providers and of course, plenty of loan options to suit different needs. Buyers don’t have to pay them as they are paid by the lenders and banks. In almost any case, mortgage brokers can help buyers get a much better deal.
The Body Corporate or the Owner’s Corporation is a body that manages specific common ownership components of properties such as groups of townhouses or apartment buildings. These common aspects include swimming pools, roofing (apartments) and various other communal facilities in these buildings. The Body Corporate is responsible for the maintenance of these communal facilities as well as for any repairs. The buyers will need to make a payment to help the Body Corporate manage the maintenance and repair costs. If you are looking to buy in a housing complex or apartment building, you will have to pay a sum as Body Corporate fees. This is a mandatory amount and will need to be budgeted when you draw up your finances for mortgage payments. Take note that the more communal services and facilities you get, the higher your fee will be.
An insurance policy is essential to protect your home from a range of events detailed in specific properties. The bank or your mortgage broker is most likely to insist that you obtain an insurance policy. In some cases, your lender may offer you a policy but it is recommended by most real estate experts that you do your own research. You can seek out the services of an insurance broker to help make this process go smoothly. It may be tempting to go with the lowest offer but it is important that you pay more attention to the requirements of your property and location when you pick your insurance policy. In this case, the cheapest is not always the best!