Buying your first home is an exciting yet stressful milestone in life. Arguably, the most important part of the process is your getting your home loan so you know what type of property you can afford. Here are things you need to consider and get together for your loan:
Evaluate your Financial Health
It is vital to consider how much money you're able to put forward as a down payment, and how much you can afford to pay in loan repayments each month. Not all loans are created equal; so buy doing your due diligence (or using a broker) you could end up saving thousands per year on a loan with lower rates and monthly repayments. While the home loan process is designed to evaluate your assets and income such that you will be able to afford your loan, you could still be overpaying if you don't compare the products that are out there. You can book in with us for a free consult regarding your financial health today!
2. First Home Owner Grant (FHOG)
As a first home-buyer, its worth checking if your quality for the FHOG. The FHOG is a scheme in Australia where funds are allocated to first home buyers based on the state they reside in. The grant was designed to offset the effect of GST on home ownership, so a one time grant is paid to first home owners who satisfy the eligibility criteria.
3. Lenders and Brokers - Getting Advice
Lenders check your assets, liabilities and credit scores to evaluate your eligibility for loans. Talking to some lenders before you apply won't hurt to make sure you're providing everything you need to. However this can be a lengthy and frustrating process for most people, and nearly impossible for those who are time poor. This is where brokers are very helpful; we'll compare products from different banks and know exactly which loans will suit your financial situation best. If however, you choose not to use a broker, its vital you talk to different lenders to make sure you go with one that fits your needs.
4. Applying for Pre-Approval
Most of the loans we do for clients are pre-approved finance. This means that you get the go ahead for your loan before you've confirmed what property you're buying. Pre-approval is a must for anyone who wants to be able to make an offer quickly and persuasively, it also shows agents you are a serious buyer.
The rest comes down to finding your dream property. Finding a real estate agent to help you shop around is useful to many people, and you'll be looking at houses knowing your financial limits, and knowing you're ready to make an offer.