\u201cI don\u2019t know what I can afford to buy. I don\u2019t know what deposit I need. I don\u2019t know if I\u2019ve got enough money saved yet. Actually, I\u2019m a first home buyer! I don\u2019t know anything!\u201d<\/p>\n
That might seem funny, but it\u2019s actually the best way to embark on the first home buying trail. And here\u2019s the real FinancialPlus. You won\u2019t waste any time getting intimidated, bamboozled and deflated by banks if you go straight to a broker. Whether you\u2019re a fountain of first home buyer knowledge or a self-confessed newbie, the banks will treat you the same. You either qualify or you don\u2019t.<\/p>\n
It certainly is! You\u2019ll save an awful lot of time and probably a lot of money. See, what happens when most people go it alone is they go on endless wild goose chases. They\u2019re talking to banks that have no interest in them. The bank doesn\u2019t know that yet, but they\u2019ll be happy to waste three days of your precious time before they find out and tell you. That\u2019s the first big advantage of a broker. We go through all the available banks and lenders based on your situation and weed out everything that\u2019s a waste of time. It might only be one small thing that\u2019s a deal breaker, but we\u2019ll save you the heartache of finding out the hard way.<\/p>\n
Everything! Well, almost everything. First we work out how much you can borrow and identity lenders and loans that suit you. We assemble all the requirements (a big, complicated job in itself!) and liaise with the chosen lender.We work with you to make sure that you get all available concessions and work with your solicitor to ensure settlement goes smoothly. Just as importantly, we work with you to make sure everything is great once you move in.<\/p>\n
We can answer that with another question: how much do you want to borrow and how much income do you have to service the loan? Let\u2019s say you\u2019ve got the deposit for a $500,000 home. Nice! But, whoops, your income is only enough to repay a $400,000 home. Confused? Frustrated? Probably, but that\u2019s where a good broker can take all your financial facts, good or bad, and get you into a home you can actually afford. Don\u2019t forget, it\u2019s not just about buying that first momentous home, you\u2019ve got to be able to sleep peacefully in it at night knowing it\u2019s still going to be yours tomorrow.<\/p>\n
The absolute minimum these days is 5% of the purchase price, but you\u2019ve got to add costs of buying the home to that \u2013 your legal fees, pest and building inspection, lender fees and government fees and charges. In Queensland round figures, you\u2019re talking about $2,500 in costs for a $300,000 first home.And then there is mortgage insurance if that applies, an unavoidable annoyance that protects the lender if things go pear shaped. Mortgage insurance can add a few thousand to overall costs.<\/p>\n
This depends on the current interest rates but may be a pleasant surprise. Assuming you\u2019re renting, have a look at the place you\u2019re in right now. If you were to buy that place, you might pay another fifty dollars a week and it would be yours. That\u2019s all! Does it start to make all that dead money you\u2019re paying to a landlord seem a bit ridiculous? That\u2019s a real FinancialPlus if we can match your situation to the right bank. Your own home for not much more than rent.<\/p>\n
There are two things to think of here. How important is it to get started in the property market? And, how important is your current lifestyle? Ultimately one will either enhance the other or get in its way. Your first home has to be an affordable home well within your means. It gets you in the market. You can always turn it into an investment property and rent it out as your confidence and equity grows.<\/p>\n
Unfortunately, banks don\u2019t like change. If you\u2019re seriously thinking of buying a home, don\u2019t change your job before you get the loan! If you do, you\u2019ll probably have to sit out another six months while the bank waits to see some stability in your new role.<\/p>\n
We can make that work for you. If you don\u2019t have genuine savings, sometimes we can present a good rent ledger as proof of your ability to repay a loan.<\/p>\n