22 November 2015 The home loan process Understanding the home loan process and commonly asked first home buyer questions. Transcript: It's so important that you have a clear understanding of what sort of repayment you need, what sort of deposit you need. That will then again help you set an appropriate budget for a house. So lenders mortgage insurance is a risk fee that is charged by all lenders on loans that are more than 80% of the value of the property. So once you're pre-approved, now it's time to go out and house hunt. It's important you make your contract subject to finance. It's also important that you talk to a conveyancer and finally a building inspection. So whether to go fixed or variable is probably the most asked question I get. There's benefits for both. However one of the considerations when fixing is there is a lack of flexibility. Variable rate loans are completely flexible allowing you to pay generally as much principle as you like. However you're susceptible to interest rate rises and falls. Once your offer has been accepted, the next step is for the bank to assess the property and conduct a valuation. You're now unconditionally approved, so the top five questions that you should ask: how much deposit do I need? what's my repayment going to be? what are the fees and charges involved? what paperwork do I need to provide to get my loan approved? how long will it take to get my loan approved and how long will that pre-approval be valid for?