Today’s first-time homebuyers are inundated with a wealth of information on how to get their first home loan. It’s obvious and simple what first-time homebuyers want when looking for a loan. They want information that is clear, they want to be educated on the steps involved in getting a loan, and most importantly, they want someone they can trust to organize their finances. First-time homebuyers are often viewed as vulnerable because it’s their first time buying a home, so they’re especially prone to being scammed by bad financing sources who are only looking out for their best interests.
If you ever come across a housing or finance term you’re not familiar with in this article, do a quick Google or Yahoo search to find out what it means, it’ll help a lot. Alternatively, go to the website at the end of this article and go to the glossary page.
Some areas will be covered to help first time homebuyers with their first home loan; the type of borrower you are and the sources of financing. There is also a downloadable buyer’s checklist and a link to the home loan calculator. These topics just scratch the surface of what is involved. It is recommended that you consult a mortgage broker or other funding source to fully understand what is involved in obtaining your first home loan.
type of borrower
There are a few different types of home buyers that make up this category. The main three that will be explained in this article are; investment buyers, non-compliant buyers and first-time home buyers.
Investment Home Buyers
This particular group of buyers already owns, or is already paying for, some type of property. Your parents or relatives may have given you land or property, or may have purchased or used equity in previous land or property to make additional purchases.
Because they have existing properties, banks and mortgage brokers can get financing much quicker and easier, because they have collateral behind them (which is like a safety backup in case your finances go awry for the purchase of property). the second or third property).
Dissatisfied Home Buyers
Non-conforming mortgage loans are basically designed to finance those people who may find themselves in unusual situations with respect to how their income is paid or how they want to finance their home loan or mortgage. Non-compliant borrowers are also people who may have previously been turned down for a home loan for a number of reasons, such as poor credit, bankruptcy, or unusual income (more on non-compliant areas below).
Banks are normally quite reluctant to approve mortgages for those who fit the non-conforming loan borrower and people often find that banks turn down their first ‘standard’ loan application.
First time home buyers
Buying your first home is without a doubt one of the biggest and most exciting purchases you’ll ever make.
What you ideally need is a mortgage broker or other financing source to help you through the process of weighing your options so that you have an objective assessment of which loan is best for your situation. Mortgage brokers tend to be more objective than banks because mortgage brokers can look at a multitude of different financing options from different financial institutions to find the best loan for your situation. Even better, if you can find a mortgage broker who specializes in first-time homebuyers, then you’ll have even better information and help available because they help first-time homebuyers all the time.
Need help getting your first home loan or first home buyer grant assistance? Don’t worry, you are not alone. It’s often hard to know where to start when looking for a home loan. There are so many options and so many mortgage providers to choose from. First West Home Loans specializes in helping first-time homebuyers through the process of obtaining their first home. We guide you through the steps necessary to successfully secure financing.
There are many incentives available to first time home buyers in Australia, including the First Time Home Buyer Grant which is $7,000. In addition, there is also the option of not having stamp duty on your purchase.
As with all things, there are strings attached.
How much can you borrow?
Using a home loan calculator can help you get a rough idea of how much you can borrow. Don’t be discouraged if it’s not as much as you initially expected, it’s a rough estimate. To get an accurate appraisal, contact a mortgage broker or other financial source for more information.