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If you are a first-time buyer who is anxious to get your foot on the first rung of the property ladder, it might seem like a daunting challenge, what with the legalities and complexity of property ownership. To the newbie, buying real estate can seem like an uphill climb, and with that in mind, here are some useful tips to help you secure the right mortgage for your very first home.
- Start Saving For The Deposit As Soon As Possible – Finding the deposit can be very difficult, especially with such a high cost of living, and while it might be possible to pay as little as 5% deposit, this will cost you more in the long run. If you can aim for 20%, this should ensure that you have enough to make a decent down payment.
- Source An Established Independent Mortgage Broker – It is essential that you find a good independent mortgage broker, who will be able to source a mortgage that best meets your needs. There are too many types of mortgage to list in this article, but remember that you have an option of a fixed or variable rate loan, and the broker can help you to decide which is right for you. You can never go wrong with experienced Sydney based mortgage brokers Mint Equity provides, who are specialists in helping first time buyers secure a home loan.
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- Ascertain Your Purchasing Power – With the help of a good independent mortgage broker, you can calculate the maximum purchase price, which will help you in your search for the perfect property. It pays to remember that there are many fees and costs involved with real estate purchase, such as stamp duty, taxes and of course, removal costs.
- First Time Buyers Concessions – If, for example, you are looking to buy your first home in NSW, the government will waive the stamp duty on properties of less than $650,000, which will definitely help. There might be other concessions and by seeking out a good independent mortgage broker, you will discover exactly what you are entitled to in terms of concessions.
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- Check Your Credit Rating – There’s never been a more important time to have a healthy credit score, and should you be planning taking out any other loans, you are advised to hold off on that, at least until you have mortgage approval. If you have any outstanding loans that you could afford to clear, now is the time to do so.
- Apply For Mortgage Preapproval – With the help of your mortgage broker, you can obtain mortgage preapproval, which will mean that sellers will take you seriously. This can be obtained online and generally can be completed in a very short time. Although this is no guarantee of a mortgage, it does tell the seller that you are in a position to make an offer.
Once you have mortgage preapproval, you can begin to look at properties that are within your price range and when you find a property you like, you can make an offer and get the ball rolling.