Home Buyer Loans
Buying a home can be one of the most exciting times in anyone’s life. When taking such a big step and looking for a home loan, there are so many things to consider. Our expertise and experience with home loans can guide you through the entire process from the ‘idea’ stage right through to getting the keys in your hand.
Get expert advice for your home purchase with an experienced mortgage professional
Your home buying journey
Owning your own home is one of the most exciting things that you will experience in your lifetime. Make sure you enjoy the process by taking the time to understand all of the steps first. We’ll be here throughout the entire process to help you and offer you personalised service and support.
Planning: Whether you’re just curious, or wanting to buy a home soon, the first step is to understand your potential borrowing power.
Finding: Once we begin organising your home loan, you can begin house hunting.
Pre-approval: We’ll help you get the necessary approval so you can buy or bid with confidence.
Settlement: Purchase your home and finalise all the paperwork, nearly there.
Getting the keys: You are an official homeowner so it’s time to plan the housewarming!
We’re here to help you better understand your finances and borrowing capacity. Identifying your financial goals and understanding your circumstances are key to figuring out how much you can borrow.
Eligibility for a home loan: To be eligible for a home loan, you need to meet certain criteria that satisfies a lender’s requirements. What is a lender? A lender is anybody or any institution that provides credit assistance, i.e. a loan. They can be banks, credit unions, etc. Lenders will assess your employment status and income level, as well as any outstanding debt or credit history you may have. To satisfy lenders, you also need to have a substantial deposit saved. Lenders want to know that you are in a comfortable position financially so you can make regular repayments on your loan. To find out if you’re eligible to apply for a home loan, or are interested in how much you could borrow, book a complimentary, obligation free consultation with us today.
Credit report: Once you have spoken with a broker and are happy to move forward, you’ll then choose a lender. The lender will perform a credit check and assess your financial history, including any previous credit applications made by you, and any payments on which you may have defaulted. We’re here to make sure the lender completes all the steps to secure your loan as quickly as possible. It is important that you check your own credit report. If there is something on your report that you think could hinder your application, please let us know as part of your application.
What deposit will I need?
We’ll help you factor in fees and other costs you may have to pay to decide how much savings you’ll need to purchase your dream home. Most lenders require at least 10% deposit, plus a history of savings. In some cases, you might be able to use the government first home buyer’s grant to put towards your deposit. When you’re thinking about your deposit, think of it this way: The bigger your deposit is—the less you’ll have to borrow—the lower your repayments will be. A mortgage broker will assess your personal and financial circumstances and work with you to determine your deposit requirements.
Understanding the costs involved
Purchasing a property comes with a lot of additional expenses. It’s important you keep a detailed and accurate account of everything you spend. Here we’ll outline all the associated expenses that you can expect to incur when buying a property.
Legal representation: When undertaking the purchase of any property, it’s important that you acquire the services of a trusted conveyancer or solicitor. This ensures you meet all of your legal obligations and that all contracts are fair and transparent. Be aware that different legal professionals will have different sets of fees for certain services, so don’t be afraid to shop around. Just ask us if you need a referral.
Loan application fee: This can also be known as the “establishment”, “up-front”, “start-up” or “set-up” fee. It’s a one-off payment at the start of your loan process. The fee covers the preparation of loan documents and the legal fees for loan set-up and one standard valuation. Not all lenders and home loans have a loan application fee. We can let you know which lenders do, and which lenders do not charge this fee. We can then help you make an informed decision so you get the right loan for your circumstances.
Moving costs: The costs involved in moving can add up. You may need to pay connection or disconnection fees on your utilities. The price to hire a removalist can also vary, and you may want to get insurance in case of any damages to items you own. If possible, compare the prices with three quotes and ask whether or not they will help do the packing for you.
Building and pest inspections: A building inspection could save you thousands by helping you avoid purchasing a property that could require costly repairs. The aim of a building inspection is to highlight any structural issues or damage to the property. You should also conduct a pest inspection to help you discover any pests that pose a threat to it. A professional building inspection report can also serve as a bargaining tool for negotiating on price, or contracts.
Stamp duty: Stamp duty is a tax imposed by State Governments on people buying houses. It varies from state to state. To find out how much stamp duty you have to pay in your state, check your state government website below. Alternatively, you can also find out by speaking with us or your legal representative.
Stamp duty government websites:
Do your property research
By researching residential property listings online and attending house inspections you can get a rough idea of property prices in different areas. This will help you figure out where you can afford to buy. It’s important to take into account both financial and lifestyle factors when buying a home. Melbourne Mortgage Advice helps their clients with Corelogic Property Research Reports for any property of interest. These reports contain a wealth of information and will save you time by researching values before heading off to an open house.
Things to consider when looking at potential areas:
Will the area suit my lifestyle in five years time?
Proximity to public transport, local schools and shops
Construction in the area
Access to local parks, bike tracks and community facilities
NBN internet and phone coverage.
Driving or walking around your chosen area will also give you a feel of the suburb and help find streets that are more appealing. It’s also invaluable to keep track of prices on recently sold comparable homes in the suburb. There are lots of online resources to help you compare property prices in different areas or you can ask us to provide you with property information.
If I already own a property, should I sell first and then buy?
The majority of next home purchases are initiated by achieving a sale on the existing property BEFORE purchasing the next. Doing so can avoid the need for bridging finance and can also maintain your capacity to negotiate the best possible sale price for your existing property.
Getting a mortgage to buy your next home should be a stress free experience that delivers on expectations. The reality is that without expert advice, you are exposing yourself to significant risks. Understanding how much you can spend on your next property is what it is all about and making sure that your next home is affordable is extremely important. Too many times we see clients that were pre-approved in a bank branch only to find out they they don’t actually qualify for the loan amount they need. This is a disaster when a purchase been made and highlights the reason it is so important to get professional advice.
We pride ourselves on giving our clients, solid and reliable advice that delivers on expectations. We factor in all the government fees associated with a purchase to make sure there is enough money and manage timeframes to ensure your next home purchase settles without headaches.
How do I know what sort of loan to go with?
There are loads of options when it comes to home loans and online research can leave you with nothing but confusion. As expert mortgage advisers it is our role to understand your situation, needs and wants and provide clear advice so you can make a sensible and informed choice. A good mortgage broker doesn’t make decisions for you. They give you the information and education to make smart decisions yourself.
We have access to industry leading software that allows us to identify a range of loan solutions that are suitable for your needs. We guide you through every step of the next home buying process – before and after settlement. Lender approval criteria has never been more complex and we have the expertise necessary to save you time and money. There is no point applying for a home loan if approval is unlikely. We complete extensive research of lender policy to ensure that the solution we propose has the highest possible chance of approval. Don’t waste time and risk damaging your credit report by getting a home loan yourself. Engage us to be your trusted and loyal advisers.
We have also developed a comprehensive guide on the home buying process and encourage you to download our Home Buyer Essentials PDF to learn more about your options. It’s a great resource and we are proud to share it with Australian borrowers.