01
Nov

Loan Tips for First Home Buyers

Interior Designers Melburne

 

Buying a home is both exciting and stressful, especially for first home buyers, so when I met Tim from Mainly Mortgages who told me he especially likes assisting first home buyer’s prepare for their loan I asked him to share his expertise.  Here are some tips to get you started;

  1. Start early  – If you intend to acquire your property with a mortgage, save for as large a deposit as possible. Some lenders will lend 95% of the purchase price. If you do not have the required deposit, members of your family may be able to pledge a property they own as security, to cover your deposit. Reduce personal debt by as much as possible so that you present as an attractive credit risk!
  2. Be realistic  – Your first home will not be your last. Select a home you can afford and yes, this may mean not being able start out in your desired suburb. Limit mortgage re-payments to no more than a third of your gross salary (or your combined salaries). Ensure that you have additional funds for legal fees, normally about $1200. First time homebuyers pay no stamp duty for property purchases of $600,000 or less and discounted stamp duty for properties between $600,000 & $750,000.
  3. Get correct advice – Good advice, tailored to your needs is key to ensure that you do not miss an opportunity because your lender says you do not qualify for a loan. Each credit provider has their unique credit policy and, what works with one lender may not work with another. Most home loans are arranged by accredited mortgage advisers/brokers, who will conduct a thorough analysis of your needs and recommend the correct loan for you.
  4. Cover your risks – Have a qualified conveyancer review your Section 32 document before you commit to purchasing the property. Also, have a builder look over the property, particularly if it requires some work, to provide a realistic estimate of what it will cost to do the repairs. Builders see things that ordinary people do not! Invest in a pest inspection, particularly if you are purchasing an older property.
  5. Enjoy the process – Plan well and have fun! This is likely the largest purchase you will make.

Tim Cranna is accredited by ASIC as a Credit Representative No 499339.  He is a director of Mainly Mortgages Pty Ltd and specialises in advising First Time Homebuyers.  He can be reached at tim@mainlymortgages.com.au or at 0438 058 236.

And once you purchase your new home fill it with furniture and homewares you love by learning your style, how to create and where to shop for it using our eStyling KIT quiz