Buying your first home can be a really exciting time, but this big decision comes with a lot to think about too. There are many questions and processes along the way. In this post, we share a quick guide for first home buyers.
RESEARCH
One of the biggest questions to start off with is how much can you borrow and what would your repayments likely be? That’s when having a broker like us comes in. As financial lenders and home loan specialists, let us at i Lend Finance Solutions, take the leg work and frustration when it comes to comparing and sourcing a home loan that best suits you and your circumstances. We are all different when it comes to our finance and borrowing needs.
At the same time, this would be a great opportunity to find a place that suits your budgets and needs. By the beach, near schools for the kids, near public transportation etc. What home are you looking for? Keep an eye on real estate websites, local newspapers and perhaps walk around neighbourhoods you might want to go to. This will give you a feel of what’s available at each price range and what might work for you.
HOW DO YOU CHOOSE THE LOANS THAT’S RIGHT FOR YOU?
There are different types of loans and each have their own features, giving you a good idea of what’s available, so this is where comparing would come in. Not only can this take a lot of time (not just going through them but also in understanding the details of each) but some of the best loans aren’t even advertised. With the help of an experienced mortgage broker at i Lend Finance Solutions, we could help find loans that truly fit what you are looking for and get through all the industry jargon that might keep you from getting a home loan that’s best.
HOW MUCH DO YOU NEED FOR A DEPOSIT?
A minimum deposit is usually between 5% and 10% of the value of a property, but even better is to make a deposit of around 20% (although most first home owners aren’t able to make this amount, don’t despair you can still borrow if below this). You pay this deposit when you sign a Contract of Sale.
HOW OFTEN WILL YOU MAKE HOME LOAN REPAYMENTS?
Most lenders offer flexible repayment options to suit your pay cycle. We’d suggest to go for weekly or fortnightly repayments, instead of monthly, because you’ll be able to make more payments in a year, which will help you get your loan down quicker.
HAVE YOU HEARD OF THE FIRST HOME OWNER GRANT?
Available to Australian citizens or permanent residents who wish to buy or build their first home. The Queensland First Home Owners’ Grant conditions do vary, but can be very helpful in making your first home dreams come that much quicker. We can help you in understanding how this works and how you can attain a grant for your first home. The best time to apply for the First Home Owner Grant is at the same time you apply for your home loan.
BUDGETING
A lot of first home owners assume that they just need to save for a deposit and that’s it. The truth is there are other costs involved such as inspection reports, Lenders Mortgage Insurance (LMI), solicitors’ costs, and stamp duty are some of them.
CAN YOUR PARENTS HELP BUY YOUR FIRST HOME?
Saving for a deposit isn’t easy, especially if you aim to make a min. deposit of 20% and avoid Mortgage Lenders Insurance. Many parents want to help their adult children to buy their first home. One way they can do this is through a ‘Family Equity Loan’. Also known as a ‘Limited Guarantor Loan’ this is where parents are able to help without being left of pocket because they use their equity in their property to cover a portion of your loan. However, remember if you can’t make repayment or aren’t able to repay your mortgage, your parents would be required to pay the unpaid amount of the loan (at worst, sell their own home to cover your debt).
Landing your first home starts from here, once you’ve found the property and deciding on your loan, then it’s time to make an offer (a whole process in itself). At i Lend Finance Solutions, let us help you through each stage in getting a home loan that will get you that home with less stress and hassle, and the confidence to know you’re able to have both the home and home loan that suits you. Contact us on 0455 500 554 or info@ilendfs.com.au