Kumarpal Shah writes: The housing market is booming, houses are for sale left and right and the interest rate is increasing, and believe it or not millennial are buying houses. With first time homebuyers on the market it is important to learn how to get the best loan for you.

A few years ago the housing market was in a crisis but for investors it was the best time to a buy a house. Unfortunately for those shopping for a house now the housing market is not as favorable. Prices of homes have increased, interest rates are soaring, and the people benefiting are those who are selling.

The millennial generation on the other hand, people who are between the ages of 20-35 (roughly) are suffering. Most millennials work in large cities since they are in more of the technology field. These large cities like, London, Boston, Melbourne, New York, San Francisco, etc; are great for purchasing a home but it is hard for millennial in these cities to purchase a home.

For those who can purchase home in these cities it is important to find the perfect home for yourself and also compare loans. Most people within the millennial generation are first time home buyers and it is important to understand the process of buying a home.

Since the housing market is not a buyers’ market it will be difficult to be choosy with houses. If you find a home that you like and it is within your budget, go for it. If you don’t and you try to shop around too long it may be gone by the time you have made your decision.

The next step is to start preparing to compare home loans. To being you should consider different interest rates that lenders are advertising. Try to calculate with the price of the home, fees, taxes, insurance, and the interest rate what you can afford. Document all the choices that you have and keep a list of your comparisons.

Next go online and chose the lenders you want to talk to, call them and start discussing pricing and interest rates. Explain to them that you understand that the housing market is strong but that you are a first time homebuyer and would try to get the lowest interest rate that you can. This is also the perfect time to mention that you are actively comparing home loans, alerting the lender that they have some competition.

You cannot have your lenders talk to one another but you can try to negotiate different prices and interest rates by writing everything down. Explain to one lender that another lender has offered you a lower interest rate, but do not feel obligated to say how much it is. Try to negotiate well enough that the lenders will give you the lowest interest rate without you having to tell them what interest rates you are being quoted.

Also, when comparing home loans look at all the differences of the fees. Many of the fees are not mandatory, but not all lenders will explain that to you. By calculating the total cost with fees and without fees you will be able to graph a better picture of what your home loan may be.

In the end it is important to do your research, calculations, and talk to different lenders. As a first time home buyer you may get caught in sticky situations but if are knowledgeable in the field of home buying you will get the best price.

The guest article by Kumarpal Shah. He works within the financial market and offers tips and advices to people help them make the most of their time and money. To know more about home loan comparison in Australia click here.

© 2016 Kumarpal Shah - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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