Purchasing your first home is not as scary as you think if you’re prepared. The main thing you need to do is put your budget in writing. Setting a budget will help you decide what you can afford before shopping for your first home. Here are six tips from an expert mortgage broker for creating and sticking to your budget for your first home purchase.
1) Set Goals
Once you decide on the monthly mortgage payment, you can afford, this will help you decide the home price in your range. Knowing the home price, you can qualify for when it’s time to get your mortgage loan will save you an abundance of time. It can be very frustrating to fall in love with a home just to find out you can’t afford to buy it. Set your first home purchase goals so that they’re achievable.
2) Control Debt
Now it’s time to start getting your debt in order. Remember, your mortgage broker can only help you with products you qualify for. Qualifying for purchasing your first home is based on your income, as well as your current debt.
3) Maximise Savings
Do whatever it takes to maximize your savings, so you’ll have what you need for your down payment and closing costs. Move your savings over to high-interest earning accounts or those that have bonus savers with higher returns. Also, consider saving more every month.
4) Check Credit Scores
Your credit rating will be a significant factor when your mortgage broker searches for your loan product. Often, simple errors on your credit reports can easily be corrected. Don’t wait until the last minute to find out about these mistakes. You just may miss out on purchasing your first home. You can obtain your credit report online at www.mycreditfile.com.au.
5) Do Some Research
If you choose to go with a direct lender, you’ll need to research the different loan products you may qualify for. However, if you choose to work with a mortgage broker, your broker will do market research and evaluate your various loan product choices.
6) Get Entitlements When purchasing your first home
There are entitlements that you may qualify to receive. One is the $7,000 First Home Owner’s Grant offered by the federal government. For more information, check your eligibility at www.firsthome.gov.au. There are also various state bonuses that your mortgage broker can help you seek out if you qualify for them.
Get Assistance from a Mortgage Broker
A qualified mortgage broker can help you determine the price of the home you may qualify to buy. Don’t get frustrated when preparing to purchase your first home. Get assistance from a home-buying mentor you can trust. Call AgLend now to start the process of purchasing your first home today.
