If you are a first time buyer and considering your options when it comes to loans, you may be feeling intimidated by the amount of choice available. To help you out, we have put together 6 tips for finding the perfect home loan in the following article.
Consider Using a Mortgage Broker
Mortgage brokers are qualified and experienced people who are there to help match the right home loan to your own needs and situation. As it is your first time buying, they can be helpful giving you the lowdown on what you need to know and features you need to consider.
Plan and Calculate Your Budget
This is the most important part bar none when it comes to finding the right home loan and right property, especially when you are a first time buyer. You need to work out how much you can afford and stick to that budget. As well as the initial, set in stone budget, you need to work out a revised version once you have your hands on the house keys.
Understand Your Limitations
It is vital that you do not buy what you can’t realistically and comfortably afford. While it can be very easy to convince yourself that you only have to struggle for a short amount of time and then you will get that promotion and then everything will settle. This may actually happen, but it’s important to think ahead and foresee the different outcomes because what if you didn’t get that promotion or something else came along and got in the way of this “plan”? In that scenario you might lose everything.
Save Up the Biggest Deposit You Can Afford
Saving a deposit can help you in two important ways. Firstly, it will show any prospective lender that you are capable of exercising discipline over your finances for periods of time and secondly, the larger the deposit you put into a property from the start, the more equity you will have in that property from the get go.
Apply Early For First Home Owner Grant
Ideally, you should apply for your First Home Owner Grant at the exact same time as you apply for your home loan. You can apply for this grant through most of lenders, as long as they are an authorised agent and are able to receive and process it appropriately. By doing it this way you ensure that it is processed much faster than it would have been if you had sent it directly to your Territory or State Revenue Office.
Get Rid Of Outstanding Debt You Have
It is wise to not make the mistake that many first time buyers make of applying for their first home loan while they still have outstanding debt. Make sure you finish paying off your car, or sell and downgrade to a cheaper model and pay off any credit card debt you may have before you even begin looking at home loans. By doing this, you ensure that your home loan will be your top priority.