Buying your first home? How does a mortgage broker help? | Richmond, Hawthorn & Kew

Buying your first home is an exciting but often daunting experience. Having the support of an experienced mortgage broker will take away the worry of the unknown and give you confidence in buying your first home.

What is the benefit of using a mortgage broker?

At the end of the day, the service we offer is to be your project manager for the purchase of your home.  The process starts by sharing your financial position with your mortgage broker.  Your broker will overlay the policies from all the lenders to determine if there are lenders who will support your goal.  It is like talking to 25 different banks simultaneously.

Once it has been established there are lenders who will support you, we will then share the vital information about the different features available with home loans.  Each lender has a bunch of features that you can turn on or off which changes how the home loan works, ensuring you have a loan that is a perfect fit for your financial position and needs.  This is what we call the loan structure.  We are passionate about taking time to help explain to you what the options are so you can make informed choices/decisions.

Once the lender is chosen, the structure has been set, we will then apply to the lender and organise your pre-approval and/or formal approval.  We are your project manager, but we won’t leave you in the dark.  We will constantly keep you informed as we progress through each milestone.

A good broker will invest time with you to learn about your complete financial position and any short or long term goals that you may have.

When should I speak to a mortgage broker?

 

It is never too early to speak to a broker. If you are thinking maybe one day I might like to buy a property, now is the right time to have the first conversation. A mortgage broker does not charge you for the time they spend talking with you so you can feel confident you can obtain objective information without any cost.

It is normal these days for first home buyers to have their first conversation with their broker some 6-12 months prior to the actual purchase.  The purpose of this is to take the mystery of everything away and give you the knowledge and confidence to move forward.  Quite often at the initial discussion it is identified it is not possible to get the loan approved now.  In these situations we will help you understand what needs to change and help you build a plan/strategy make it possible.

When you go through the process of buying a property you will require assistance from a multitude of professionals. A good broker will help you build your team of conveyancer, solicitor, building inspector, buyers advocate, insurance provider etc and once again act as your project manager.

How much does a Mortgage Broker cost?

You might be surprised to learn that our broker service comes at no cost to you. 

Your home loan is not loaded with any extra costs because you used a broker, the rate will be the same, if not better than if you went direct to the lender.

Why choose Mortgage Choice Richmond, Hawthorn & Kew

The extremely well trained, experienced and knowledgeable staff at Mortgage Choice Richmond take pride in helping you make the best decisions you can, and will work to the timeframe that is important to you. In addition to being good at their craft, they are genuinely interested in what is important to you.  They will hold your hand every step of the way.

They will take you through the steps on buying a home covering everything from:

• minimum deposit required
• maximum borrowing capacity
• eligibility for government grants
• choosing the right lender
• the best loan structure
• understanding your purchase contract
• information and tips on negotiating the offer

Once you have made your choice, they will lodge the paperwork to the lender, liaise with your conveyancer and real estate agent and project manage the entire process all the way through to settlement.

How long does it take to get a home loan approved?

There are two stages in the process: pre-approval and formal approval.

Each lender has a different time frame for processing a pre-approval, ranging from 2 hours to 5 business days.

Your pre-approval is valid for 90 days. If you have not purchased in this time we can extend the pre-approval.  This is simply done by asking you for recent payslips and financial information.

Formal approval will vary lender to lender and typically takes anywhere from 3 – 10 days.

What do I do now?

To start a conversation with a broker give us a call on 0455 621 555. 

During our first conversation we will talk through your requirements and calculate your maximum borrowing capacity and minimum deposit required plus anything else that is important to you.

 

If you have a desire to find answers to questions or if you want to read some more information before reaching out to us, we have some great resources to get you started, like:

• Do some quick sums on how much your first home could cost you
• Check out our simple finance videos
• Download our guide: Buying your First Home Download now!

Book a time with us

The Mortgage Choice team in Richmond & Kew are ready to get started on buying your first home. Call us on 0455 621 555 or click on the Contact Us button at the top of the page.