Tips For First Home Buyers
Buying a home is one of the most momentous life decisions that could be both exciting and challenging. It could be overwhelming especially for first home buyers who are navigating such a huge financial commitment for the first time.
Therefore it is important to be prepared with guidance. Here at Investors Mortgage, we walk you through the process and help you understand each step clearly. Our experience and expertise will transform your confusion into confidence. Here are some tips for you to make a head start on your home purchase journey.
Start saving early for the deposit
Saving for the downpayment is the first step when planning to purchase a home. The bigger the savings, the better loan features and interest rates you will be able to obtain. If you pay at least 20% down payment, you can avoid paying Lenders Mortgage Insurance (LMI). LMI is a type of insurance you pay to your lender if you borrow more than 80% of your home’s value. Gift funds can be used for your deposit, but you need to prepare ahead for these funds to be accepted by lenders.
Limit your liabilities
Before buying a home, make sure to keep your other debts at minimum, such as personal loans, car loans and credit cards. Having these debts can significantly affect your borrowing power.
Know how much home value you can afford and be realistic
Your mortgage broker will be able to run the numbers for you once you have provided them with your financial information, obligation free. We can also provide you with complimentary property insight reports on the properties you are interested in.
Limit Credit Applications
Be cautious about applying for too much credit. Numerous credit applications can raise questions about your ability to manage multiple accounts. Apply for new credit only when absolutely necessary. Consult a mortgage broker so they can shop for rates and run calculations on your behalf.
Negotiate with the seller
Don’t hesitate to negotiate.
The following are some useful property negotiation tips:
• Do your research about the local property market and comparable properties that have been sold recently. Be prepared with your research findings before you deal with the seller.
• Be aware of the vendor’s needs. Communicate to come to an agreeable deal for both parties. You can ask if the purchase price is negotiable if they need to settle fast. Check if they will do the home repairs needed and other issues that you think may arise in the purchase process.
• Make an offer or bid only if you can afford it.
Gather your financial documents and necessary paperwork for the home loan application
There is a lot of information online and you can easily determine what documents and information your lender requires once you submit a home loan application. Do your own research or contact a mortgage broker to ensure that you have the exact list of requirements needed for the application.
Speak to your mortgage broker and get pre-approved
Explore your lender options & be familiar with the lender products by speaking with one of our experts.
Get in touch with the team at Investors Mortgage and we will make sure that you are guided every step of the way. The process takes care of itself when you have the right team behind you. Let’s get started!
Spread the Word
