Most people do not have the means to buy a house on cash basis. The common option is to borrow to buy one. Financing is done by mortgage finance lending Australia companies. It all starts with getting pre-qualified for a loan by putting in applications to potential lenders. Lenders look at income, other liabilities one might have and other factors will be taken into account before an application is approved. This is essentially of how credit worthy an applicant is.

It works well to get put in applications to more than one lender. Lenders rely on credit worthy borrowers for business. Getting pre-qualified by more than one lender therefore gives a borrower leverage to bargain for better terms, primarily lower interest rates. The step after this is getting pre-approved.

Pre-approval means that you have been approved to borrow a certain maximum amount. A borrower can then start looking for a home that is within the price range of the amount they have been approved for. Just as is the case with pre-qualification, pre-approval by multiple lenders gives one an edge when making offers on homes.

Australia has mortgage banks and mortgage brokers. The brokers are not actual lenders. Rather, they advice clients on all the options open to them and guide them towards the best choice in line with their financial situation, preferences and needs. One drawback with brokers is that they do not engage directly with lenders and so they cannot bargain for better terms or protest when an application is turned down.

Mortgage banks are that actual lenders. However, they limit what they lend to the pre-approved amount which may fall short of the price of the house a borrower wishes to buy. However, many banks act act as both lender and broker as well so clients the best of both.

Apart from conventional financing of home loans, there are other options. One is seller financing where the seller takes up a mortgage themselves. Another possibility is private lenders who give short term loans depending on the value of the home to be bought. However, they charge higher interest especially to lenders who have failed to get pre-qualifications from banks.

It is important that those buying their first home study all the options available. A mortgage is a commitment that binds one for a long time. A wrong choice can cost a borrower a lot and the right one can save a lot of money. First time buyers should consider what is known in Australia as honeymoon or introductory rate loan. With these loans, borrowers get lower interest rates for a specified period of time. This is typically 12 months but it may be 6 months or three or four years as is determined by the lender.

The discounted interest rate may be effected in two ways. One is a discounted fixed rate or fixed discount. With this option, the rate is variable but it remains at a pre-determined level or at a level that is lower than the standard variable rate. For the time that the reduced interest rate is in force, the reduced rate will change as the market rate changes. With discounted fixed rates, the interest rate remains the same for the introductory period despite market ups and downs.

When shopping around for mortgage finance lending AUSTRALIA borrowers can refer to the following source. Take advantage of the latest rates now by applying through here http://www.peterfisherfinance.com.