What do I need to do to buy my first home?
When considering whether or not to purchase your first home you may have alot of questions, like where do I Start? , What do I need? A good place to start is with a Mortgage Broker. This way you can learn if, or how much deposit you need, how much can you borrow. In the meeting with your Mortgage Broker you will have all the information you need, to get ready to purchase your first home. Your Mortgage Broker may even put together a plan, if you're not quite ready to purchase your first home.
The basic things that banks and lenders require when financing your first home are -
Banks and lenders will look at your current job, how long you have held it for. Don't worry if you have recently changed job, as some banks and lenders will take into consideration your previous employment, how long you held that position for, was it a similar role and maybe look at reasons why you changed employment (Like a pay increase). This is an advantage to using a Mortgage Broker, as we have a panel of different banks and lenders, and we may be able to find a home loan for you based on your current situation. Banks will also look at your current income to determine how much you can borrow for your potential new purchase.
Banks and lenders will need to see statements for any current credit commitments or other financial commitments that you may have. Credit card statements, personal loan or car loan statements etc. These are financial commitments, so they will vary how much you can borrow for your home loan. Again your mortgage broker will look at these commitments, and find a home loan suitable for your needs. Your mortgage broker will be able to determine how much you can borrow too.
You may need a deposit to purchase your first home. With banks you generally need a minimum of 5% of the purchase price for your deposit. This would generally need to be saved or held in a bank account for a 3 month period, so the bank or lender could determine that you have genuine savings. The more deposit you have the better generally speaking. It is advised to speak to your mortgage broker, as to determine what you need for your situation. There are different options though, when looking to finance your first home. Some options require no deposit at all, like using your parent's property as extra security for your home loan. This loan option is called using a guarantor for your home loan. Click the link and check it out.
Once you are ready to consider pre approval home loan finance, some of the paperwork you may require to apply for a home loan is -
Submit your mortgage comment, questions, blog below, or contact us, and we will personally reply to your question, comment or blog.