Looking for your first home is a very exciting time, but it can also be a little daunting as you start to think about everything that is involved. That’s why we’re here, to do the hard work for you & save you time & stress. Here is a list of things that you need to consider when looking to get your foot on the property ladder:
Save for a deposit
Most lenders require a minimum of 5% of the total loan amount as a deposit, so start saving now! Make an honest appraisal of your living expenses & see where you can shave off some of your costs. It’s a good idea to set up a direct deposit from your pay into a separate savings account with no card access so that you can’t be tempted. It will be worth it!
Online Calculators
You can use online mortgage calculators to get a rough idea of how much you can borrow. We have over 20 online calculators, including interest only mortgage calculators, loan repayment calculators, savings calculators & many more for you to take a look at.
Pre-approved loan
Once you’ve got a rough idea of how much you can borrow, come & see us. We can look at your personal circumstances & work out which loan is best for you. Getting a pre-approved loan is essential as you can then house hunt with confidence & you won’t end up falling in love with a house that you really can’t afford. Also, the seller will know that you are a serious buyer.
Find a property
Now that you know what you can afford, you’ll be able to have a clearer idea about property type & location. A lot of first home buyers have to compromise on something so be prepared for this. Try to think about what is most important to you now & over the next five years. Do your research on suburbs – public transport, schools, shopping centres etc. Familiarise yourself with property values in the area you like.
Make an offer. Sign a contract
When you find your dream home, you will want to put in an offer. Your agreement with the vendor only becomes a legal commitment when a contract of sale has been signed by both parties. This will confirm the selling price & any terms & conditions that you have agreed upon & is usually subject to lender approval, a building inspection report & pest inspection.
Even if you have a pre-approved loan, you will still need to gain full approval from your lender.
Pay a deposit
Your deposit is required once the contract of sale is signed. This is not part of your loan.
Appoint a conveyancer
You will need a solicitor/conveyancer to check your contract of sale. On settlement day they will also check that all fees are paid & everything is correct so that you can take legal ownership of the property.
Additional costs to consider:
If your loan amount is more than 80% of the value of the property you will need to cover the cost of Lenders’ Mortgage Insurance (LMI). This is a one-off insurance payment. We can give you an LMI estimate based on your financial situation. We can also help you to understand Stamp Duty Fees & make sure that you are aware of Conveyancing/Legal Fees.
Incentives
At the moment there are various incentives designed to help first home owners start on their journey. These include Stamp duty concessions & the first home owners grant. We will talk you through all of the schemes you may be able to take advantage of.
Don’t forget, once you know what you can borrow, have found your perfect home & have chosen a loan, we take care of the application process, taking all the headaches & stress away. Having a broker in your corner just makes sense!
Disclaimer:
The above information is general in nature. It has been prepared without taking into account your objectives, financial situation or needs.
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