According to a recent study, over 446,000 homes were sold in 2021 despite the 21.9 per cent increase in home prices. Although the average cost of a home in the country is close to 1 million Australian dollars, many would want to own a home rather than paying increasingly more expensive rent.

The Australian government may find ways to help the citizens own a home, but they can only do so much. First-time homebuyer mortgages are always the most convenient and readily available home financing option for people.

If you are a first-time homebuyer, here are a few tips for you.

 

Get Your Finances in Order

Before you start looking for a home, you need to understand your financial situation first. Make a list of all your sources of income, savings, and expenses. Determine how much money you can allocate for your initial home deposit and mortgage repayment. 

Getting your finances in order also involves knowing your credit score. The higher your rating, the easier for you to get your mortgage application approved.

 

Search for Your Dream Home at Various Price Points

Once you have your proverbial financial ducks in line, it is time to start looking for homes. Look at online listings and see what the market has to offer. 

Discover your ideal home at different price points. If you feel overwhelmed with all the choices available to you, narrow your list to your top three to five options.

 

Shop for a Mortgage Broker

In looking for your ideal home, you will have a better picture of how much money you need to borrow from a lender. Once you have a list of your home choices, start looking for a mortgage broker. 

Finding the right broker can be daunting, but if you compare rates and ask questions, connecting with the right broker is easier than you would think. Try making all your mortgage inquiries in a single day to lessen their impact on your credit score.

 

Get Your Mortgage Pre-Approved

After finding the mortgage broker for you, it is time to get pre-approved. A pre-approval is a lender’s conditional approval allowing you to borrow money to purchase a property. 

This document makes home sellers more confident in transacting with you. Plus, if you ever get into a bidding war with another buyer, a pre-approval can give you the edge you need to purchase the property.

 

Appoint a Conveyance Solicitor

Whether you transact with a home seller through a real estate agent or personally, you need a conveyance solicitor. They serve as a lawyer that can help you settle the legalities of owning the property, including the transfer of ownership.

Hiring a conveyance solicitor is necessary to ensure the transaction, from the payment to the submission of land title to the proper government agency.

 

Get Your Mortgage Approved

When applying for a mortage, remember to prepare all the necessary documents. Different mortgage companies have various requirements. 

However, most of them would require proof of identity, income, and assets, along with your credit history and residence status.

 

Check the Mortgage Contract before Signing

After receiving a mortgage approval, the mortgage company will send you a final letter of approval together with the mortgage contract. Before signing the document, make sure to review it. 

Check if all the interest rates, payment schedules, and the amount you have agreed upon are all correct. If you have any questions, clarify them with your broker.

 

Conclusion

It may be hard to believe that homeownership is possible even with a limited budget. However, it is possible with a first-time homebuyer mortgage. All you need is to know your financial status, narrow your home choices, shop around for the right mortgage broker, get a pre-approval, and hire the most competent conveyance solicitor.

If you are looking for a company that offers reliable first-time homebuyer mortgages in Sydney, turn to Wealthy You. We are a mortgage company providing top-notch mortgage solutions to anyone who wishes to buy their dream home. Contact us today!

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