Thinking about buying your first home and feeling overwhelmed by your unanswered questions? We can help!
Here are some of the questions we’re most frequently asked by first home buyers.
1. How much do I need to save to buy my first home?
The more cash you have saved the better!
Generally speaking, the more expensive the property is, the more cash you will need for your deposit. The more cash you have, the more options you have – which potentially makes you a stronger borrower.
We can help you determine what type of property you could buy right now, based on your current savings. Or, if you know the type of property you want to buy, we can determine how much you need to save.
As a general rule, to avoid Lenders Mortgage Insurance (LMI), your deposit will need to be at least 20% of the purchase price.
2. Can I purchase my first home without a deposit?
Yes, in particular situations you can. This will involve relying on help from your family via a family guarantee loan and could be an option depending on your circumstances.
3. How much can I borrow to purchase my first home?
How much you can borrow depends on your income, your monthly commitments / expenses and how much cash you have saved. Each lender is different when it comes to calculating your borrowing capacity, meaning one lender may allow you to borrow significantly more than another.
We’ll perform all the calculations and let you know how much you can afford to spend on your first home, so you can start house hunting.
4. How do I make an offer on a property?
Before you put in an offer, you will want to know what your maximum borrowing capacity is and have a Pre-Approval in place. You’ll also want to check the contract and building report and be sure that this is the right property for you.
5. Why should I talk to MO’R MORTGAGE OPTIONS instead of going directly to my bank?
Moving house is arguably the most stressful time in one’s life. By managing the finance side of things for you, we can make the whole experience much easier, less stressful and one that you can actually enjoy. Yes, it should be enjoyable!
We will provide you with support every step of the way. We will take the time to understand your longer term plans and tailor a loan solution to match your needs. We will then co-ordinate the entire process with the lender, the agent and your solicitor to ensure everything runs as smooth as possible. And best of all, our service is provided to you completely free of any charge or any obligation.
6. What is a pre-approval and should I get one?
A Pre-Approval is a good idea because it means a lender has already assessed you as a ‘suitable candidate’ for a home loan. It means a lender has most likely assessed your income, your current assets and liability position and agrees in principal to lend you a certain amount of money.
A pre-approval does not give you absolute certainty of funding. But it does give you the confidence to bid at auction or put in an offer on a property you love.
7. Can you help me with the First Home Owner Grant (FHOG) Application?
Yes, we can definitely assist you with this. It’s all part of our service. We also have a JP within our office, which makes it particularly handy when it comes to getting your supporting documents certified.
8. Can you suggest a good conveyancer?
Absolutely! We prefer working with other client-focussed professionals who are committed to delivering our clients the best service possible. We can definitely refer you to good conveyancers in Canberra and can even recommend good solicitors if you’re purchasing interstate.
9. Can you help me compare home loans?
Yes, that’s exactly what our job is! It’s what we do every single day. We will do all the hard work for you and research all your options so you end up with the most competitive home loan that works for you.
10. Isn’t a home loan just a home loan? Aren’t they all the same?
Actually, no. You would be surprised at how significant the differences can be between loans and lenders. Depending on your future plans, some home loans are significantly better than others.
For example, if you know that your first home will not be your ‘forever home,’ we can show you how to set things up correctly at the start, so that it could easily become an investment property later on.
There are also lots of home loan features available (like an offset account for example), that lenders don’t always show you how to use properly. It’s important you know how to maximise the benefits of these features so you can save some interest, own your home sooner or start that investment property portfolio you’ve always wanted.
We would love to help you purchase your first home. In fact, assisting first home buyers is the best part of our job!
Give us a call on 02 6286 6501 to find out how we can help you.
