When you are buying your first home there are many things to consider and prepare for when applying for your first home loan. Liaising with a reputable mortgage broker will ensure that you have all the knowledge required about the application process, have an understanding of the loan you are applying for and ensure your finances are under control before applying. A mortgage broker can assist you by providing support, advice and taking care of the application process – making the process a lot more stress free on your end!
1. Meet with a reputable mortgage broker
A mortgage broker can be useful when applying for a home loan if you are looking for advice, support, and knowledge. A mortgage broker can assist in providing you with personalised financial advice depending on your circumstances and based on your income, expenses, and other factors. A mortgage or finance broker will be able to assist you in finding a loan that best suits your needs, and provide you with knowledge about the terms of your loan including interest rates, and go over relevant stamp duty costs, council rates, lenders mortgage insurance, pest inspection and more.
A mortgage broker can handle the application process of applying for a loan to take some stress away from you! A reputable mortgage broker has experience in liaising with banks and lenders and can take your goals and personal circumstances into consideration throughout the application process. Mortgage brokers are able to provide faster approval rates and will personally deal with the initial assessments and loan lodgements.
As a client, all you have to worry about is providing any required documentation and filling out the initial application form and then the mortgage brokers can take over on your behalf. Liaising with a mortgage broker will make the process efficient and easy to manage, having a person who can work as the middleman for you!
2. Understand the application process
There are several home loans available which are suitable for various reasons and circumstances which have different application processes attached. It is important to understand the application process of the home loan you are applying for to ensure you understand the terms of the loan, interest rates and terms and specifics related to your circumstance.
It is essential to time looking and buying a home with the timing for your pre-approval. Generally, in Australia pre-approvals are effective for approximately 90 to 110 days. It is important to ensure you have pre-approval before placing a despot or signing a contract. An experienced finance or mortgage broker will be able to assist in providing information regarding pre-approval and best timings for your home loan.
If you are applying for a First Home Owners Grant it is important to understand the application process and what is required. It has been found that approximately 80% of applications of First Home Owners Grants have been submitted incorrectly which results in a delayed settlement process. A mortgage broker will be able to assist you with the application process and prevent delays with the grant.
3. Ensure your finances are sorted
There are many factors to take into consideration regarding your finances when buying a home and applying for a loan such as your income, expenses, your deposit, extra costs and personal circumstances.
One important financial tip when buying a home is to ensure that you have enough money required for a deposit is essential when applying for a home loan. In most cases a minimum deposit of 5% is required to apply for a home loan. In many cases it is beneficial to save for a larger deposit of approximately 20% as your home as this will generally increase your chances of being approved and will not carry as higher interest rates in comparison to a lower deposit rate.
Ensuring that you have saved enough money for the exact deposit you require as well as extra costs such as loan establishment fees and settlement fees is essential before buying a home to ensure you are aware of extra costs.
Meet with a finance broker when starting your home loan application journey!
There are several things to take into consideration when applying for a home loan such as financial costs and understanding the application process. If you are looking into applying for your first home loan, reach out to a reputable finance broker who can provide support, knowledge, and assistance along the way.
