While the very thought of securing a home loan leaves many feeling intimidated and more than a little overwhelmed, the process isn’t as difficult as we’re led to believe. Buying your first home is one of life’s most important financial decisions. With a little guidance, that initial step of applying for a home loan doesn’t need to be an impossible task. We have broken down the process and compiled a list of things you need to know when preparing to secure a home loan. Check it out.
Basic Bookkeeping
Ensuring your finances are in order is essential before seeking to secure funding from the bank. Clearing any existing debts such as car loans, personal loans and outstanding credit card debt is the easiest way to separate your savings from your expenditures and demonstrate your ability to budget efficiently and effectively to the lender.
Credit History
What’s most important to any financial institution is that you’re able to pay your bills consistently and on time. When securing a home loan, remembering to account for key costs including land rates, home and contents insurance and electricity is critical. For insurance quotes in Victoria, visit RACV. The most attractive and successful candidate for a lender has minimised their debt and is able to organise their expenses.
How Much Do You Need To Borrow?
Part of the process of buying your first home is gaining an understanding of your borrowing capacity and keeping your goals realistic. A mortgage calculator is a useful tool for assessing your best deposit amount based on what you can afford in monthly repayments and interests. With proper consideration of your income and expenses, it is possible to handle a mortgage stress-free.
Saving Matters The Most
When it comes to securing a first home loan, not only does a larger deposit mean less money borrowed from the bank, it also allows you to save more in interest. By striving for a deposit of at least 20%, you avoid being charged Lender’s Mortgage Insurance and, by extension, the higher interest rate which often attaches here to your loan.
Seeking Advice
Make sure you are fully informed before securing a home loan. Professionals can tailor the best deals and advice relevant to your needs to maximise your eligibility to secure a home loan. Passionate about providing an outstanding client experience, MoneyQuest covers all aspects of property-related lending, including first home buyers, investment loans, refinancing and much more. Click here to learn more and get a free consultation.
Taking Advantage Of Grants And Incentives
First home buyers who are willing to buy new properties are in luck, as there are many grants and incentives on offer by the government. You can read all about it here.
Are you a first home buyer thinking of building your own home? With a little planning and the right advice, the task of acquiring a home loan and building doesn’t have to be stressful! Book a call with our New Home Advisory Team or call 1800 184 284 to get started today!
Let us do the legwork for you.
- We’ll ask the right questions to better understand your needs
- We’ll create a recommended shortlist ideally matched to you
- We’ll answer specific questions or concerns related to home building, land purchasing or financing
1800 184 284
