Buying the First House of Your Dreams? Read This Before You Go Ahead

Buying your first home could be extremely overwhelming on one hand, and extremely worrisome on the other hand. Walking safe and talking the precautions would definitely help you go a long way. You may also take the assistance of professional Mortgage Brokers from Your Finance Adviser. The specialists will guide you throughout the process of bringing your dream house to reality. 

However, for your information, read the points below to gain a complete understanding of how should move ahead- 

• Evaluate your current savings 

To assure themselves of your repayment liabilities, the lenders will have a look at your current savings. Your way of managing your income and expenses will prove your ability to repay the loan. The lender will consider your savings of the last 6 months and may offer you a loan up to 95% of the property purchase price if impressed by your savings. Only offered by very few lenders, you may also be allowed an option of adding up the costs of your mortgage insurance (LMI), implying that you’d be able to borrow 97% or may 98% (including LMI) of the property value. You must only have a 5% share in the property value to be shown as genuine savings to cover the secondary costs. You can also use a mortgage calculator to get an estimate of how much amount would you be spending and how much you already have. 

• Borrowing eligibility 

It is of ultimate importance to sit down with your Mortgage Professional and get your home loan pre-approved. It is advised to get your home loan approved even before you start looking for the property, so that you are aware of the maximum amount of loan that you may borrow. Your lender would also let you know of any conditions that you should meet for the approval. 

• Costs involved 

Apart from paying a deposit for the property that you’d buy, there are also a number of secondary costs involved in the process of borrowing. These expenses involve Lender’s Mortgage Insurance (LMI), stamp duty, loan set-up fees, conveyancing, settlement fees, inspection costs, valuations, and home insurance. The Professionals from Your Finance Adviser will look up for best home loan rates for you, whilst helping you manage these expenses with the interest amount in a better way. 

• Grants and Incentives  

The government also provides several incentives and benefits to first homebuyers, depending on the State they are present in and their individual circumstances. The first homebuyers may gain access to First Home Savers Account, Reduced Stamp Duty, First Home Owners Grant, etc. You may confirm these government-offered benefits with Lending Specialist  from Your Finance Adviser. 

The experts from Your Finance Adviser will assist you in the process of buying the house of your dreams. You may seek us for funds required to settle your mortgage, the mortgage process, and detailed First Home Guide.  

This information is general only and is subject to change at any time.  Your complete financial situation will be assessed before acceptance of any proposal or product.