If you’re planning to buy your first home, there are many aspects of the process that can be intimidating and confusing. From knowing what kind of loan you should choose to put the mortgage application in to make it official, there are plenty of ways things can go wrong if you’re not careful. However, with this low-interest home loan guide, we’ll walk you through every step of the process and help make sure your home buying experience goes smoothly from start to finish. Let’s get started!
1) Lowest Interest Rates
If you’re looking to buy a house, a low-interest rate home loan could save you thousands of dollars in interest over time. With house prices at an all-time high, it’s more important than ever to get competitive rates. Depending on your credit score and financial history, you may be able to get an interest rate well below 5%. Talk with a few lenders and compare rates before deciding on a loan.
2) Tax Benefits
Whether you buy or build a house, there are numerous tax benefits available to make your purchase easier on your finances. One of these is an IRS first-time homebuyer credit that can be worth up to $8,000 for some taxpayers. Another is an opportunity to deduct mortgage interest and property taxes from your taxable income each year.
3) Faster Closure
You can typically buy a house with a low-interest home loan in 10 to 15 days, which is much faster than your traditional bank’s 40-45 day loan processing time. In some cases, you may even be able to receive approval on your loan application and close in as little as 24 hours! This speed is important because it means that you can move into your new home when you are ready, without having to wait around for weeks or months.
4) The No-Paperwork Approach
When you consider low-interest home loans, it’s important to remember that they come with a few potential drawbacks. Many lenders insist on completing a ton of paperwork during the loan application process—and some don’t even accept online applications. This means that you might have to spend hours filling out personal financial information and waiting for documents to be processed and faxed back. If you can handle skipping all of these steps, a low-interest home loan is worth considering.
5) Quicker Approvals
One of the reasons why many people prefer low-interest home loans is because they get approved quicker than other loan types. It’s not that lenders are trying to be hard on you if you go for a high-interest loan; it’s simply that due diligence and paperwork are more involved when it comes to such loans. When you opt for a low-interest loan, there’s little doubt about your ability to repay and thus getting fast approvals is easier.
6) Flexible Repayment Options
One of the great benefits of a low-interest home loan is that it comes with flexible repayment options. If you’re strapped for cash, you may be able to pay just 1% or 2% on your monthly installments and carry high interest, but as soon as your financial situation improves and you can afford to pay more than that, then you can always do so! With higher interest rates, repayment isn’t flexible at all and such a change in finances will affect your payments significantly.
7) Less Paperwork Required
Because a low-interest home loan attracts less interest, you’ll be paying off your loan in a shorter amount of time and will likely have fewer forms to fill out. With less paperwork required, chances are you’ll be able to settle down into your new home sooner than with a higher-interest mortgage.
8) Getting Lower Interest Is Simple
With a low-interest home loan, you’ll be paying a significantly lower amount every month. This gives you a lot more freedom over your cash flow and budgeting. If you’re currently thinking about purchasing your own home, speak to one of our advisers today to get more information on how we can assist in getting you a home loan that fits your needs.
9) Easier To Stay On Top Of Monthly Payments
It’s easy to fall behind on bills when you’re juggling mortgage payments, utilities, car payments, and everything else. The key is to stay organized and set up automatic withdrawals from your checking account for regular payments. That way, there’s less chance of missing a payment or getting into trouble over late fees.
By now you know that there are many advantages to a low-interest home loan. Whether it’s making your mortgage payment or even investing in other areas of your finances, going for a low-interest home loan can do wonders for your financial future. So, don’t wait! Start applying for home loans today!