First home loan
These days, first home buyers are inundated with a myriad of information on how to get their first home loan. It’s obvious and simple what first home buyers want when they’re looking for a loan. They want information that is clear, they want to be educated about the steps involved in getting a loan and, most importantly, they want someone they can trust to manage their finances. First-time home buyers are often perceived as vulnerable because they are first-time homebuyers, so they are especially prone to being scammed by bad financial sources who only have their best interests at heart.
If at any stage you come across a housing or financial term that you are not familiar with in this article, please do a quick Google or Yahoo search to find out the meaning, it will help immensely. Alternatively, go to the website at the bottom of this article and go to the glossary page.
Several areas that will be covered to help first home buyers with their first home loan will include; the type of borrower you are and the sources of funding. There’s also a downloadable buyer’s checklist and a link to a home loan calculator. These topics only scratch the surface of what’s included. It is recommended that you consult a mortgage broker or other financing source to fully inform you of what is involved in obtaining your first home loan.
Borrower type
There are several different types of homebuyers that make up this category. The main three that will be covered in this article are; investment buyers, non-conforming buyers and first home buyers.
Investment home buyers
This particular group of buyers already owns or is already paying off some form of property. They may have received land or property from their parents or relatives, or bought or used equity in previous property or land to make further purchases.
Because they have an existing property, banks and mortgage brokers can find financing much faster and easier because they have collateral behind them (which is like collateral in case their finances go bad on their second or third property purchase).
Non-Eligible Home Buyers
Nonconforming home loans are primarily designed to finance those people who may be in unusual situations with how their income is paid or how they wish to finance their home loan or mortgage. Non-eligible borrowers are also people who may have previously been turned down for a home loan for a number of reasons, such as bad credit, bankruptcy or unusual income (more information on non-eligible areas below ).
Banks are generally quite reluctant to approve mortgages for those who fit the non-conforming borrower and people often find that their first ‘standard’ loan application is rejected by the banks.
First home buyers
Buying your first home is undoubtedly one of the biggest and most exciting purchases you will ever make.
What you ideally need is a mortgage broker or other financing source to assist you in the process of weighing your options so that you have an objective assessment of which loan is the best for your situation. Mortgage brokers are usually more objective than banks because mortgage brokers can look at many 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 doesn’t specialize in first home buyers, then they will have even better information and help because they help first home buyers all the time.
Do you need help getting your first home loan or help with First Home Buyers’ Grant? Don’t worry, you are not alone. It’s often difficult 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 specialize in helping first home buyers through the process of acquiring their first home. We guide you through the steps necessary to successfully secure funding.
There are many incentives available to first home buyers in Australia, including the First Home Buyer’s Grant, which is $7,000. There is also the option to have no stamp duty on your purchase.
As with all things, there are conditions 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 originally hoped, this is a rough estimate. For an accurate estimate, contact a mortgage broker or other financial source to obtain additional information.
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