Home YOUR Home Series : 6 : Maximize your knowledge from your mortgage broker

You may be novice or experienced property investor, you may decide to go your way through the property purchasing process but I bet that will be can be difficult .In order to get a best mortgage deal you don’t have to spent a penny,just you need to find a good mortgage broker .

He can save you a bundle of money on your home loan. There are lots of options or you can check and compare yourself . Following questions may be helpful to get the good advice but you need to do little home work , you should listed out clearly your income and funds available to you from all sources, your tax returns, your previous loans.So these are here

  • How do you decide which loan is best suited to my personal situation? How much of a deposit do I really need to obtain a loan?
  • Dose taking loan impact will my credit card limits have on my borrowing capacity?
  • What are different fees which will incur when taking out a home loan like establishment or processing or file charges etc ?
  • What are features of loan and how it is different from others option you want me to select? Is there any catch or hidden clause?
  • I have preapproval loan from other bank but now my circumstances has changed ,How should i  go forward ?
  • What are the documents or information do I need to provide for mortgage?
  • Is there any early exit fee or can I transfer it to another lender?
  • What are the procedures that I need to follow in order to obtain my finance and settle my loan?
  • Can I choose to fix my interest rate in at a later stage?
  • What is Lenders Mortgage Insurance? Which lender offer the least if I have less than20% upfront payment

Last but not the least, If your want to check the approved broker, You can Search Australian Securities and Investments Commission’s Register or to use MFAA website to find an approved credit adviser

Usually A mortgage broker gets paid by the banks but it depend on you and broker and he can provide you competitive rates, expert advice, hassle-free loan… so Happy Home Hunting.I would highly appreciate you if you add some questions which may help some other property hunter ..

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More Decisive You :7: Decision is a game of mind and application of strategies to your thinking

You may be a father or mother, Brother or sister , you may be a working professional or may be self-employed, you may be a job seeker or may be a house wife , you may be young or old reading this but you undoubtedly have numerous skills to do your job. However, one skill surpasses and affects all others. That skill is the ability to think and act. Your thinking and action are the two most important things to solve any problem. These impact every situation you face, perhaps making the ability to think well the most beneficial and practical skill you can possess.

The best way to enhance the ability to think is small talk to self and being self-critic. It help to direct your thinking in more focused way. I repeatedly put emphasis on the concept that, nobody else than you know you better than anybody. You are the best chef of the food you are cooking in your mind.

How to be you own critic   – You need to question your own judgments or action that you are going to take. There is not good or bad thinking .Every thinking has some bases and influential factors .The result depends upon the process you followed to arrive at a conclusion. Nobody can stop the firm resolve of any soul. There are various kinds of persons. Some think and don’t act, some act but put less time on planning. The best is think thousands times before making your decisions and once you decided just stick to it .You need to know what are your core drivers and factors that can lead to a good feedbacks or bad failures  ,which are not desirable or expected .

How to maneuver mind strategiesYou add value to your thinking process by asking questions to critique your own thinking. It will give to options to see the other faces of the problem. I found when one applies certain strategies in a process to improve your thinking. These strategies that recommend are not a principle of rocket science, I am sure that some of you already know about these.

  • You must have clear about your thing rather vague thinking.
  • You focus must be focused – by this I just want to put emphasis that you need to focus on what is relevant.
  • We have already discussed in previous blog the how to formulate effective question results you effective information which is precise and relevant to issue .it will help in forming a better solution to a problem.
  • Diverge and converge – this lets you to find out various alternative views and then converges to a statement which is most suitable and explanatory to understand the concept, describe a problem or form a solution .
  • SWOT analysis by this one can view situation in strength – weakness- opportunities & threats .One can enlists pointwise against each of the heads. I found this tool is beneficial in any kind of situations .
  • STAR analysis, this acronym stood for –situation – task –action- resolution. This is another tool that decision maker use to find the resolution of an issue and action .The heads are self-explanatory .

Applying each of these strategies to your thinking will help improve it in specific ways

Home YOUR Home Series :5:How to get Secure Financing

In my previous blog, you need funds to buy a house .The source of the funds may be your own savings of you can get loan from some financial institutions. Owning a home and living in it is just a different kind of feeling, you may feel that you won a fort in a war and you feel like ownership thrilling .At the same time if you r brain is telling you don’t have enough funds to buy it, the thought of taking a loan or look for a mortgage will kill you feeling of joy.

  • Most of the first-time buyers get confused about the process .Their brain become nervous about making such a large financial commitment.
  • You need to establish the targeted budget for your property based on your income or future returns.
  • You need to define the factors of acceptance for your dream property. Check what can be the maximum value you will going to get in that budget with established factors of property.
  • Find multiple financial institution or source of funds apart from your saving and get the quotes. Choose the one which sits to your conditions. Visit the bank and talk to a loan officer to find the documentation required for filing a loan case.
  • Some financial issues a provisional loan offered where property is not chosen or selected, for that you may require furnishing proof of your financial credibility .That is called preapproved loan.
  • Know how much you can save to pay the bank installment. some of the banks have option to open offset account .it means that if there is some account in which you have some money the bank will only charge you interest on the balance amount of your loan amount after deducting the money in the linked offset account .
  • Try to read between the lines of financial contract. Ask question, “Can you please let me know anything which I haven’t asked or I missed to enquire “
  • Evaluate each of the quotation of loan approval or preapproved loan.
  • Ask for the recent property approval hey have provided.
  • You can ask for the probable time of approval and process of loan.
  • There are lots of loan comparisons websites on the internet .who will provide to instant comparison between various lenders.
  • Work out the installment you are going to pay. Ask for any pre-payment penalty, or transferring the loan to other bank penalty.
  • The task of financing may be routine for them but it is very important for you .You need to ask every details and non-clarity may upset your financial plan.

Home YOUR Home Series :4: How to choose your Agent for buying

Like in the previous blog I mentioned that , It is your responsibility to proficiently coordinate all the professionals involve in the process of buying a home .If hired a professional representative or agent who acts on your behalf and for your interests you need to take care of following points .

  • Your agent is not doing it for charity; it is his profession for earning.
  • Practical understanding is more important than the qualifications ,but in some countries it is mandatory that one must have license to work as real estate agent , ask for the license .
  • Professional agent means getting beyond the resume.
  • How you come across the agent through some relative, internet, mutual friend ?it does not matter what matter is the expertise of the professional .specially the knowledge of the professional in the locality .
  • Ask him / her experience with some relative references.
  • Visit his/ her office and check the portfolios.
  • Check for last three months deals they done in the area.
  • Ask what one should look beyond the fancy look of a house.
  • Check what are the direct or indirect cost involve in the process
  • Ask some of the trade specific questions, why they are selling a house ?Why did you become a real estate agent? Why should I work with you? What do you do better than other real estate agents?
  • Check, is he clearly understood your needs and conditions?
  • Check from the agent, what are the most common things that go wrong in a transaction and how would you handle them?
  • How clearly agent understand your need, just ask him can he has made some notes or can he reiterate you priority conditions and needs ?
  • Ask for the most difficult deals he has faced and how he faced or fixed it ?
  • Ask if some problem come in the documentation what will be his liability to get it corrected.
  • Signed a contract with the agent with everything in black and white is a fool proof legal plan , usually agents has their pre-set of defined conditions which protect their own interest .
  • The contract is mutual and it is your money which will going to be involve in the transaction, you have every right to amend any clause in the contract.
  • You may ask for his experience to handle his best and worst clients.
  • You may ask your agent about other professional that he /she suggest you should work and their credentials
  • Ask did he has own experience of buying a property of himself?
  • Ask basic question about some upcoming projects in the nearby area which will increase the property value.
  • Ask if I buy this property what will be the areas that can be renovated and enhance the value ?

Home YOUR Home Series :3: Know Your Rooks and Pawns to buy a home

Although it is your decision to buy a home and the home will be going to belong to you only. but buying a home is just like game of chess to get a best results you must have your rooks and pawns to be placed at strategic position to get the best deal for you . A typical real estate transaction involves more than two dozen separate individuals-insurance assessors, mortgage brokers and underwriters, inspectors, appraisers, buyer’s agents, seller’s agents, bankers, title researchers, and a number of other individuals.

It is a process to create a perfect harmony rom a group of different instruments artists. It is your responsibility to proficiently coordinate all the professionals or you may have some professional representative who acts on your behalf and for your interests.. Make sure to pay him the professional fee. Peanuts only catch the monkeys. And when you are take one of your major financial decision pay a profession what you agreed to others wise he may play some trick because he is expert in his field

  • Paperwork is the key for your transaction. Ensure the title is clear.
  • Put a cluse if any pending arrear arises to the period previous to sale is the seller responsibility to pay.
  • As far as possible make all the transaction through bank /cheque / draft
  • Area of the house is accurately mentioned on the papers.
  • You have paid the amount, you name and amount should be properly mentioned on the transfer papers and stamp duty
  • Make sure that property is endorsed on your name in the council records / revenue records.
  • Check your home insurance papers and ask for claim out procedure, settlement time, what are the major key clauses.
  • Always enquire the service in details, professional fee is covering what and if you want extra service what will be the costs. ask a lot of coverage of services ,negotiate the deal .
  • Try to read between the line of any deal or any paper your going to sign. Signed stamps will be a legal document.
  • Finalise the amount with the professional and settle the terms and conditions before hand .
  • Ask your agent or broker to get at least two monthly electricity gas, water bills.
  • Ask each of the profession ,What are some mistakes that you think people make when buying their first home?

Home YOUR Home Series: 2: You NEED KIT to buy a home

You may be heard of first aid kits, spare parts kit, testing kits, maintenance kits you need KIT as tool to shape your dream n to reality. These are K -Knowledge, I- Investment & T- Time

Knowledge: There is no limit of brain and of knowledge, the more you gain the more you practice. The more you practice more result you get . The best way is to keep your eyes and ears always open and assimilate the bits and piece together. First step is to know you and your family needs.

  • What can be the future trends of a particular area?
  • What amenities you need to close to your home?
  • Are you purchasing for living or for investments?
  • What can be your principle sources of information?

Investment: We are not living a hostile world,everything is have some value and price tag associated with it . You need funds to buy a house .The source of the funds may be your own savings of you can get loan from some financial institutions .You must be mindful about the amount you are borrowing

  • Do you have enough stream of income to pay your debts?
  • Do you have some future scope of multiple streams of income?
  • What are different sources of loans or funds?
  • What are the hidden charges apart from interest rates?
  • Is there any pre-payment or missed installment penalty?
  • Look out for any major upcoming project in your area like new railway station or bus stand or bye pass road or a leisure center

 

Time: Spare some time to investigate the market and the area you are going to live in .It is a major financial you are making .if married make sure to give weightage to your spouse comments. In India it is old saying,” one and one makes eleven”. Two brains are always better.

  • What may be the factor to choose your property? List out the factors.
  • What can be the properties which suits to 80% of your requirement and weigh each property against your list factors.
  • Talk to the owner asks about the history of home its construction.
  • If possible get the drawing of the electrical , sanitary plan
  • Talk to the neighbours and check the local council or electricity department for any outstanding billing amount.
  • Check for the tile in the local property register and get the copy of JAMABANDI /FARD /revenue records

Home YOUR Home Series :1: Action is the first step to buy a home

Food, shelter is the basic need of any human being. We are now living in the civilised society .We born in to a family .We raised by our parents with our siblings .after one grown up he or she start his or her own family .This cycle goes on and on , and so is the need of house is increasing with food .Every one want live in his or her house . But you need to start at some point of time. There are solid financial reasons to support one’s decision to buy a home, and, among these, equity build up, value appreciation, and tax benefits We have so many fears and myths which held our mind to make a decision to buy a home or piece of land.

Home is one of the major investment decisions one can make in his or her life. The first step is to dream about the home and making decision to buy a home .Although each one of us, there are many personal reasons to buy a property .

It not only give the shelter and save the cost of rent but also acts as a tool for wealth building .Although if you are living in home it does not have substantial immediate economic value yet Buying Home ranks among the top of the list.

Most of the people when making a home buying decision are an accidental investment.

We all know the value of owning a home it lays the foundation for a life of financial security and personal choice.

EVERY DAY IS DAY OF INVESTMENT, no day is bad or good ,The day you make the decision believe me the price you bought is the best price .

THERE ARE SOMEONE WHO FEEL HAPPY ABOUT YOU BUT MOST OF THEM ARE JEALOUS, it is fact your parents kids will be the most happiest person when you buy a property ,but believe me every other will be jealous of you .

I DON’T HAVE MONEY IS JUST EXCUSE, plenty of money lenders and financial institutions are there to support you if you have substantial income source of have a sound financial plan to pay your debts .

MARKET IS LOW MARKET IS VERY HARD, There is never a wrong time to buy the right home. The best time is he time when you decide and approach the back.

THIS HOME IS NOT MY DREAMHOME, First home is just a start , it gave you immediate start to look for another . it is likely that the first house may not be your dream home but .over the period of the investment will reap you some profit

I CANT AFFORD IT, it is another excuse believe me, If you are paying rent, you very likely can afford to buy. All you need to use your creative thinking. You need to stretch out your imagination to source out the funds. List out five sources from where you can have the long terms loans

I DON’T HAVE KNOWLEDGE ABOUT PROPERTY MATTERS, Buying a home doesn’t have to be complicated – there are many professionals who will help you along the way , The best way is to search the agents in your dream area

Take the Control of You Series: 7 : Take responsibility of your financial situation ..

I often listen that money is not everything that you need in your life. But I am sure money is not everything but it can pay your bills and dues and keep your life going. You can have all the philosophical principles of life but they can’t guarantee to pay your bill of electricity or top up your mobile to talk except on emergency number .I just want to ask simple question for you.

  • Do you control your Income or someone else control your income ?
  • Do you have ever established an emergency fund or alternate source of income ?
  • What happen if you have personal limitations or circumstances made you to earn less ?
  • Do you have a plan I place to build financial freedom in next 5 to 10 years ?
  • Have you taken steps toward starting that business you’ve always dreamed of owning?
  • What are you assets and liabilities? How they will grow in next 3 or 5 or in 10 years ?

First step you have to make is to make a small evaluation on two heads .Listed out all of the income sources and all of the possible expenses on current date.

Evaluate Your Income & Calculate Your Expenses

There are two methodologies either you can curtail the expenses and spend less on the thing hat you already spending or Expand your earnings by expanding your comfort zone and sailing in he zone of uncertainty and risk .Most of the cases grass on the other side is always growing .

All you need a common working sense which you already knows and you are practicing that over the years. Believe me you don’t require any expert consultant for this .You are the best who knows about your drain points and saving pots .You need to blend the best of above two approaches

Make sure you should pay Yourself and enjoy the money .The money you earn has no meaning if you dies tomorrow. You never Know whether you going to wake up in the next morning or not .

A few of the suggestions are

  • Best option is investing in yourself, train yourself to explore your horizon.
  • Don’t pay your bills late it will save unnecessary late fees or penalty charges by paying your bills on time.
  • Make of list of expenses that you made over a period of six months .Group them in routine and regular and fluctuating heads.
  • Try to pay your debts as quickly as possible and save money in interest over the long term.
  • Saving is important start with saving small and learns from internet how to do stat smart small investments.
  • Your must diversify your investments by reducing costs.
  • In case you need small fund ask from your friends and relatives it is kind of interest free ,But make sure you pay them before time and thank them it add to your personal credits and relations .
  • Create your emergency savings fund to ensure you have enough money in the event of a crisis or to help someone .You will get the help only of you help others.

How to Make Secured and Memorable Passwords

We all do lots of online transaction and use lots of login .we all have different ides for forma password. I have learned couple of techniques to form a secured password .I have a problem I forget the password so often so I try to put some logic when I make my password.

  • When you have to make password .Just think of any song or any sentence in your mind, e.g. It’s my life …or We can be heros ….. or simply I love my country , Then pick the first letter of each word ;-

It’s my life [iml] ,We can be heros [wcbh],I love my country [ilmc] then make one of alphabet a capital and add a number in front or at back also add a symbol to make it more secure .e.g imL1974# ,wcnh&2015 or ilmC1947$

  • Another technique which I use is I think of any word of even my ownname or wife name .e.g suppose my name is ManojKumar . what I do .i will chose the key on top or bootom line of key board and pick the alphabet , you can choose top left side or top left side , you can you bottom left side or bottom right side e.g

Manoj Kumar top left side keys are kwj0io8kw5

ManojKumartop left side ,jqh9ui7jq4

ManojKumarbottom left side (below m only spacebar.so I chose nothing so I just capitalise the alphabet like wise others   , below “a” left side shift key so I chose nothing I made a as capital )MANknmhMAd

Manojkumarbottom right side e.gMzNlmKjMzf

  • For password of your ATM cards you can reverse the year of your birth e.g if my year sis 1976 my password will be 6791 ,you can reverse initial or last digits of your phone number .You can make more different by first letter your siblings e.g I have three 3 ad your age e.g mine is 41 as last two in the middle just add your addition of your birth year e.g mine is 7 so it is 7=4=11 and again 1+1= 2 so my password is 3241

Use your creativity to make you password secure .It is your own responsibility to secure you and your transactions .Majority of you already know still there are some more tips .

Do not share your password with anyone don’t write anywhere, change your password frequently.

Make use of on screen keyboard while entering your password in to your bank login .You can invoke onscreen keyboard . if your are using windows you can use

Windows button+R it shows you run prompt -> then ->type “osk”

Magic in You Series :6: Power to Differentiate between investment and liability.

I decided to sell my car and motorcycle when I came to Australia. I had made decision to buy a property in 2009. I did manage to get bank loan to purchase the property. After that I make some change in that property. But I didn’t put on rent for 5 years. I was worries if I give that to someone it will damage my property .There are lots of property frauds are coming in news  My colleagues  often offered unsolicited advice to me ,’Your tenants will occupy your house”. I heard and read lots of bad stories of property  dispute  .Because now I am putting my family to other town. it take around 5 hours to reach .My property was in Ludhiana . But in sept2014 .I told to one of my friend who lives in the same locality to put that on rent . I have given him my bank details so that my tenets can transfer the rent to my account. I was regular in making   banks repayment of installments. It just want it  to became a asset from liability so I gave this home on rent  .By deciding and taking this action I converted this liability to my  .Now it start giving me income.

Most of us purchase lots of stuff .We are proud to possess that . We think Car is an asset .Is that really your asset? You need to do regular maintenance, you need to pay registration regularly .You need to pay regular roadworthiness.[ In India you have to pay only once lumps ump road tax. ]. How often you usethat . We Build houses and we are happy that it costafter 10 year become triple .but how many of us sell the house in which we are living, and move to new place. .Not many, only a few. A house is asset if it gave you some earning .Otherwise it is just a liability,

When we talk about asset .first things which come in your mind are property ,shares , insurance policies , Pensions,. What is asset ? Asset is something which is constantly appraise e the faire market price . But we need to understand the concept of asset value is only get when

What is the best Investment and asset you possess? We actually see the balance sheets and personal financial statements toascertain the net worth . As per Robert Kiyosaki. [author of rich dad and poor dad ] an asset is something, which put money in your pocket .according to him there are four kind of assets property (only if it is rental ) ,paper [stocks ,mutual funds, bonds ],Business& Commodity [Gold, silver ,natural resources ]

According to me best asset is your life and best investment is the investment in you. Net worth is the habits and intellect you possess. It is established fact through various psychological analysis .and FMRI experiments .the people who has more active left brain are more successful more happy and are able to achieve maximum in their life . In India we have a proverb whichgo like this

Don’t save money for your child if you child is bad ,he will spoil all of your savings ,                                        

Don’t save money for your child if you child is Good ,he will earn his own living .

Even a small idea can bring you fortune. We talk about selling the things Alex Tew had created a single webpage he has sold every pixel of it .i.e each dot on it’s webpage dollar-per-pixel advertising page raised over a million dollars in just a few months.

Now Liability are the things in your life are those which takes out money from your pocket and does not repay you any things .Like outing then=money in black hole unless those utilized properly , TV ,Mobile ,Vocation Trip …… and many more .According to me your most worst liability is your bad habits .it takes your time ,money and resources .

For anything you start you need KIT . KIT is Knowledge, Investment and time. if You lost everything you still has brain with you .If you have knowledge you can capture your lost kingdom again. You need to invest in you . You need to understand at very early age what you want from your life and you need to work for it .it is my experience that yourparents ,your brothers , relative and friends are all important .But at later stage of life they are only visitors in your life .You need to take your own major decision in your life .

We can acquire knowledge by education, by listening by reading, from positive media. Best knowledge is in the academic journals .But sadly only handful people study them.majorlyauthor and his parents or family and the magazine editor are 90% readers of the scholarly article. You need not only money but you need to invest you time to learn and practice the craft . It is you who can convert the craft to skill .if you are intelligent it does not mean that you will succeed in your life . You need to constantly upgrade your knowledge and revisit your basic school .if you really want to make a difference in your life …