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03 9014 1413

03 9014 1413

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First Home Buyers

We get that there are likely a lot of feelings running through your head right now as you prepare to purchase your first house. From apprehension and the necessity for a detailed plan to the relief, pride, and independence that come with buying your first house.
In order to make your first home-buying experience a pleasant, memorable, and fruitful one, this guide will lead you through the typical as well as not-so-typical considerations you should make.

Initiate the process

Having decided to buy a house, the first thing you need to do is save up for a down payment. A down payment of at least 5% of the home’s purchase price is normally required by a lender before closing a mortgage on a home purchase. Saving 5 percent isn’t a huge amount of money when you break it down.
You’d be astonished at how much of a down payment you can amass with a little forethought. Check out what’s going on. Investigating your utility bills to see if you can negotiate a lower rate with your current or a different provider is an excellent first step. Saving for a down payment might be sped up by cutting up on certain non-essential costs.
Your ability to ‘service’ a loan is a key factor that lenders consider. An acceptance on your loan application may hinge on how much of a deposit you can provide, so every dollar counts. If you make a few little adjustments to your current lifestyle, you will be able to save for your down payment and meet the loan requirements much more quickly, putting you on the path to buying your first house and reaping the rewards of homeownership in no time.
Now is the perfect opportunity to make lifestyle adjustments in preparation for a future home purchase. Putting things off will just make it more challenging in the future.

What amount may I borrow?

Lenders will evaluate a number of aspects to establish your borrowing capacity and to ensure that you can afford to make regular loan payments.
These aspects include:

  • Your earnings

  • Estimate of household costs based on the state or area in which you reside.

  • Number of dependents

  • Other monetary commitments you have

  • Restrictions on your credit card

  • If you are purchasing the property as a lone owner or in conjunction with another buyer

Lenders may additionally consider the following factors:

  • Amount of money you intend to borrow

  • The loan’s terms for repayment

  • Rate of applicable interest

As your mortgage broker, we will assist you in obtaining a reasonable estimate of the amount you might potentially borrow to provide clarity on the price range you can afford when acquiring a property.

Understand the associated expenses

If you borrow more than 80 percent of the home’s market value through a mortgage, you are required to pay Lender’s Mortgage Insurance. This one-time payment safeguards the lender against the potential that you may be unable to repay the loan.
LMI can cost up to several thousand dollars, but it allows you to pay a smaller down payment and obtain financing sooner than if you waited until you had a 20 percent down payment saved.
Here are some extra expenses that we will assist you in understanding and planning for:

  • The stamp duty is the relevant state government tax based on the purchase price of the property.

  • Cost of Registration and Building Inspection

  • Insurances

  • Legal/Conveyance Fee

  • Moving Expenses

  • Overhead Loan Charges

Knowing and planning for the fees and charges associated with a transaction allows you to prevent unpleasant, unplanned expenses. We can help you become “loan-ready” and lead you through the entire process so that you are more informed and confident about how things will unfold.

Why use a mortgage broker?

If you are considering purchasing your first house, it is always a good idea to engage with a finance and mortgage industry expert, such as ourselves. Through many years of successfully arranging loans for our customers, we have amassed excellent understanding of the lending process, enabling us to deliver a service that makes it simpler for our clients to achieve their desired result.
Therefore, when dealing with us, you can anticipate the following:

  • We will spend time with you discussing the type of home you wish to purchase.

  • There will be a clear understanding of how much you may anticipate borrowing.

  • We will listen to you and comprehend what is most vital to you about your loan requirements.

  • You will not be charged any fees by us, and any lender costs paid to us will be disclosed

  • We will assist you in securing the most suitable loan among the hundreds of possibilities offered by our network of lenders.

  • Once you have made your selection, we will create your application and submit it to your preferred lender for approval.

  • We will also monitor your loan till settlement and keep you updated at all times so you are always aware of its exact status.

First home owner’s grant

The government offers several advantages to first-time homeowners. We will ensure that you have access to all pertinent information on any available concessions that will assist offset some of the costs associated with purchasing your first home. Visit www.firsthome.gov.au to learn more about the grant and choices available in your state.

Find the house of your dreams

Are you ready to start looking for your dream home?
You may start looking at residences by calling estate agents or surfing the Internet. You might want to think about the following:

  • Do you prefer to purchase in the suburbs or near your workplace? Is it established or ‘off-the plan’?

  • Is it in a peaceful neighbourhood with a garden and a fence, or is it close to public transportation so that you may commute to work?

  • Consider what necessities you’ll require during the next five years. Perhaps it’s a nice school, a convenient neighbourhood retail centre, or proximity to family and friends.

  • Smart first-time buyers may also wish to investigate how well prices have risen or fallen in recent years in order to forecast the neighbourhood’s future tendencies. If you contact us, we can provide you with a full property report and valuation on property in Australia, providing you with an alternative viewpoint to those selling the property.

Examining the property

In addition to finding a house you love, it’s crucial to have peace of mind before committing to the purchase, which is why a property inspection is useful.

Neighbourhood

  • Do the neighbourhood stores appear to be places where you would like to spend time?

  • Are the front yards and homes in your neighbourhood properly maintained?

  • Is there a lot of traffic?interest

  • Are the neighbourhood stores convenient to reach?

  • How close is the medical centre or hospital?

  • Is local transportation readily available?

  • Is it near a park or other open space?

  • Is there a school zone nearby?

House

In addition to the property's qualities, it is essential to evaluate any potential interior or exterior flaws that may necessitate repairs and hence effect the asking price when touring the property.

You may choose to take photographs so you may study them after your visit; however, it is courteous to consult with the agent first.

Questions

The majority of real estate brokers specialise in their local region and may be a wealth of information, so try asking the following questions.

  • How old is the residence?

  • How long has it been available for purchase?

  • How much are the council rates?

  • Does it have a main gas connection?

  • Are there any specific restrictions on the property?

  • Is there a chance for future zoning changes?

You may ask further questions about the neighbourhood, the increase of property values, the homeowner’s association, the nearby schools, etc.
Depending on the age of the home, investing in an independent property inspection to solve any structural, plumbing, or other concerns before committing to the purchase can be a worthwhile decision.

Making a home purchase offer

After you've decided on the ideal home for you, the following step is to place an offer on it. Trust us to assist you with the negotiations and to present the correct value of the property.

For example, you'll want assistance in preparing the sales summary and delivering it to the seller. This document contains information such as:

  • The amount of the deposit you'll be required to pay.

  • Address of the residence.

  • Offer price you are making.

  • Balance and deposit amounts.

  • Details about your financial institution.

  • Other terms pertaining to the selling.

As soon as the seller approves the private-treaty offer and you sign the sales agreement, we will assist you in making the first deposit. And begin the process with the lender who will finance the transaction.

Closing the deal

It is wise to have a professional review the contract and look it over for potential red flags before signing it.

There are a number of necessary legal procedures, but you can relax since we will handle everything on your behalf.

A conveyancer is someone who can handle the paperwork involved in transferring ownership of a property and can communicate with the appropriate government agencies on your behalf.

We've got everything covered, no matter what else could come into play. And we'll make sure to keep you informed at regular intervals during the entire course of transaction.

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Get The Book
Unlock Property Wealth

Join our Free Facebook Group where we share all the tips and tricks for saving thousands on your mortgage and paying it off sooner.

Join Home Loan Academy
Talk to a Home Loan Expert

Get your queries answered by our experts today! Unlock your financial potential & achieve your goals sooner.

Book Free Appointment