Most first home buyers find the experience of buying their first home incredibly exciting. Equally, the process of getting your first mortgage can be extraordinarily stressful. After all, this is likely to be the biggest financial commitment you have ever made. Just remember, you don’t have to do it alone.
Having a great mortgage broker who can assist with professional advice and support, can make the whole process a lot smoother and as stress free as possible.
We specialise in mortgages for first home buyers and as a result we fully understand the particular challenges a first home buyer faces and how best to deal with them. Also because we deal with so many lenders it allows us to get the best possible deal for our clients.
The reality is most first home buyers are not experienced in buying property which makes the services of a good mortgage broker even more vital.
Some key points for first home buyers to keep in mind
- Loan Mortgage Insurance (LMI) provides coverage to the lender, not you, the borrower. What this means in the event of you defaulting on your mortgage the lender will claim from the insurer, generally QBE or Genworth. Whilst this obviously benefits the lender, it provides no benefit to you the borrower. In the event of a default the insurer will seek to recoup the funds from you.
- There are a lot of additional costs to be factored in when buying a property. Stamp duty, legal costs, application/establishment fees, LMI and rates are all costs that need to be accounted for.
- When buying at auction there is no cooling off period. There is no cooling-off period for anyone who buys a property at auction.
- Once again at auction you must be prepared to pay a deposit (usually 10%) on the day. So you must have tens of thousands of dollars that you can access on the day.
- It makes good sense to engage a conveyancer to who can assist with the required documentation and prepare for the settlement process.
- Getting a professional pest/building inspection is always advisable. Of course if you are purchasing at auction you must have this inspection conducted prior to the auction date. This means investing several hundred dollars in the property even though there is no guarantee that you will win the auction. Unfortunately that is one of the issues a buyer must deal with when purchasing at auction.
As you can imagine, having the services of a mortgage broker to assist with getting the pre approval for your finance is invaluable.