Top tips for first home buyers
Applying for a mortgage doesn’t have to be difficult. However, it is best to be well prepared before you start the home loan process. Here are some tips to help first home buyers prepare for their first property purchase.
1. Do your research
Apart from visiting a reputable mortgage broker – much more time-savvy than visiting 20 or more lenders individually – start taking note of property and mortgage related information sources.
2. Visit home loan calculators online
There are plenty of Australian home loan calculators on the internet. These will give you an idea of how much your income, assets and liabilities will allow you to borrow as well as what the repayments will be on a particular home loan amount.
3. Write up a budget
If you don’t already have a budget plan in place, create one! If you can follow a budget for a year-long period or more, tweaking it long the way, then you’ll have a strong idea of what money you need to put aside for things that crop up regularly through to once a year.
4. Determine if you are eligible for the First Home Owner Grant
You may be eligible for the Australian government’s First Home Owner Grant. There are also a range of state concessions available on top of the First Home Owner Grant. Your local Mortgage Choice broker can walk you through them.
5. Think about concessions and other costs involved
You may know how much you can afford but have you considered the new car you’ll need in a year’s time or new/replacement furniture or that overseas trip you’ve been thinking as being two years down the track? When you’re committing your money to a mortgage, you’re committing your lifestyle to a mortgage too.
6. Consider suitable loan types
Many people are not aware that there are many different types of mortgages. Everything from family equity loans to paying off a loan with a friend rather than by yourself can bring property ownership closer than you may think.
7. Determine your property picture
Once you have a better idea of the loan type, repayments and loan amount, you can start looking at areas and types of homes you think you can afford.
8. Consider a pre-approval
Consider a loan pre-approval before going on the serious hunt for a place to buy. These are normally valid for three months at a time, with a possibility of extension.
Contact your Mortgage Choice broker to help you to find the home loan that suits your needs.