5 Tips For Your First Home Loan
Six in ten Australians hope to buy a property in the next five years, according to a home loan market study conducted by QBE Lenders Mortgage. Twenty per cent of those plan to do so within the year. West Australians were the most keen to enter the property market, followed by their NSW counterparts.
If you are hoping to dip a toe into the property world, here are five things you should keep in mind when you apply for your first home loan.
1. Speak To A Home Loan Expert
You should make a beeline to a professional if you are considering a home loan. A mortgage broker is often the first port of call. They are not normally affiliated with one bank or financial institution. Mortgage brokers will have a list of contacts and details for a wide variety of home loan providers. Their advice should be impartial and not biased to any particular financial institution.
2. Lay All Your (Financial) Cards On The Table
Home loan applicants will need to provide all their financial information, either to a mortgage broker or bank/financial institution. This will have to take place before a home loan quote for a first time buyer is provided. This will shine a light on how much money a first time buyer can borrow. Providing fiscal details is one of the essential first steps towards acquiring a home loan.
3. Find Out Your Credit Rating
A first time buyer’s credit history will certainly have an impact on their home loan, and if they will be able to borrow money at all. A good credit rating will help the home loan application process run a little more smoothly. Applicants with a less-than-stellar credit rating may still be able to borrow money. However, their home loan may come with a higher interest rate than a borrower who has a good credit score.
4. The Home Loan Waiting Game
Rome wasn’t built in a day. First time home buyers should keep in mind that the home loan application process can take some time. A couple of months from the initial application process to moving in is generally seen as good time. First home buyers should not feel discouraged if the process takes a little longer. It is understandable if they feel a little frustrated with how slowly the process may be moving along. First time buyers should keep their chin up and keep their eyes on the prizes. All the waiting will be worth it when they move in to their new home.
5. Not All Home Loan Companies Are Created Equal
And they don’t treat all home loan applicants equally either. This is especially true for first home buyers. Some home loan providers were set up to specialise in applicants with a bad credit history. Other home loan companies were established to look after applicants in a specific age bracket. Shopping around and finding the best mortgage broker and/or home loan provider can make the first time buyer’s journey into property ownership a smooth and, hopefully, low-stress experience.
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