6 Tips for First Home Buyers Applying for a Mortgage

Hi all. Found an excellent article that I am sure many will relate to. Hope you get something useful out of this...

When you’re buying your first home, applying for a home loan may seem like a daunting prospect. But it really doesn’t have to be that way. We show you what you need to know about finding and, most importantly, securing your first home loan so that you can get onto the property ladder as soon as possible.

Understand what you can borrow

Before you apply for any loan – and before you even begin your property search – you should always have an understanding of how much you can borrow. The easiest way to do this is to use a mortgage calculator.

While a mortgage calculator isn’t exact, it will provide a reasonable estimate of how much a lender will let you borrow and therefore what your budget is when it comes to buying.

You should also take time to make sure you know the criteria lenders will take into account when assessing your loan application, such as your credit history and ability to service a loan.

Take advantage of first home buyer subsidies and payments

The good news for first home owners around most of Australia is that the government provides incentives towards getting into your first home. These include stamp duty exemptions or concessions and, in many States and Territories, a first home owners grant.

Think about using a mortgage broker

When you’re applying for a loan, it may be tempting just to speak to the financial institution you already bank with. But it usually pays to look around. The mortgage market is competitive and you may be able to get a much better rate by going elsewhere.

Better still, consider using the services of a mortgage broker. A good mortgage broker has access to a large number of lenders and knows their lending application processes. This should save you time and money and give you the best chance of getting your mortgage when you need it. They also should be able to advise you on which home loan is right for you given your own personal circumstances.

Looks like really useful info? Just click HERE to find out more. If you’d like to share perspectives or discuss how it relates to your business, call me on (0414) 934 277 or email me at carmen@loansociety.com.au.

Thanks,

Carmen