Are you a first-time home buyer? If that’s the case, you might not know where to begin, and you could have a lot of unanswered questions. Considering purchasing your first house can be a daunting task for many people, especially if it is their first time. We can, however, advise you and answer some of your burning questions with the help of our Harcourts sales consultants and agents.
Today, we’ll go over some of the most frequently asked questions from first-time home buyers. So, if you’re looking for your first home, this is the blog for you, or it can even serve as an educational piece on what questions you should ask when buying a home:
FREQUENTLY ASKED QUESTIONS
- How much of a deposit do I require?
So you may be thinking – how much money do I need before I can consider buying my first home? If you put between 5% and 20% down on a property, you may be required to pay Lenders Mortgage Insurance, which allows lending institutions to grant you a larger percentage of the purchase price. This can be included in your upfront costs or in your loan repayments, which will be spread out over the loan’s term. If your loan exceeds 80% of the purchase price, you must pay Lenders’ Mortgage Insurance.
You don’t need Lender’s Mortgage Insurance if you’re a masterful saver and have a 20% or more of your deposit. This lowers your total loan amount, allows you to build equity faster, and saves you money on interest over the life of the loan.
- What is the process of applying for a mortgage?
Applying for a mortgage can be a tedious process, but there is a general overview to applying for a mortgage the right way. It is critical to complete this step correctly because missing information may cause lending institutions to reject your application.
Furthermore, various banks offer unique home loan packages, so do your research and start comparing your options. Mortgage lenders will require proof of income to ensure that you can repay the loan. If you’re an employee, this will include your payroll information; if you’re self-employed, it will include your tax returns.
Follow these five steps to apply for your mortgage:
- Evaluate your deposit
- Clearly identify your borrowing capacity.
- Choose the mortgage that is most appropriate for you.
- File an application for a loan
- Formal acceptance and settlement
- In addition to mortgage repayments, what are the upfront costs when buying a home?
Apart from your typical mortgage repayments, there are a number of upfront expenditures associated with purchasing a home. First and foremost, stamp duty and transfer duty must be considered. This is a state tax that is imposed on all home purchases and is computed based on the property’s price, location, and mortgage type. This is a one-time expense that must be factored into your budget. You may be partially or totally exempt from stamp/transfer duty if you are eligible for the First Home Owner Grant in addition to the First Home Buyers Assistance Scheme incentives. This will be determined through personal consultation with your sales consultant/agent.
Purchasing your first home is one of the most significant investments you will ever make, and one of the most intimidating. It’s easy for first-time home buyers to become overwhelmed by the numerous options and decisions that must be made in order to climb on the property market. However, there is a lot of assistance available to make the buying process go as smoothly as possible. If you’re interested in buying your first home or investment at Narracan Lakes and have a bunch of unanswered question , please contact our friendly staff today to guide you along the way:
Jess Barr jess.barr@harcourts.com.au
Jahleesa Gafa jahleesa.gafa@harcourts.com.au
