A Step-By-Step Financial Guide to Help You Buy Your First Home
Have you decided you want to buy your first home but are unsure on where to start? What you need is a step by step guide to buying your first home, so we have compiled this article to help you get financially ready! Read on for real-world financial guide for first home buyers.
Get a free financial health check
Lenders will assess absolutely everything about your finances – your income, your expenses, and your debts, assets and credit score. Put yourself in the best position to get that first home buyers loan first time by speaking to an experienced mortgage broker before you do anything else.
Your mortgage broker will tell you exactly what lenders will want to see for your application. Seeing a mortgage broker first will mean you have a checklist to work through your personal finances. This will take the guesswork out of what is relevant or not.
Work out how much you can afford
Once you know what your expenses look like in black and white, you can figure out how much you can afford on your first home. Use our borrowing power calculator for an indication of how much you could borrow.
Once you know how much you can afford to borrow as a first time buyer with your income and expenses, you will need to factor in other home-buying costs on top to make your first home purchase a reality. Chatting with a mortgage broker can help you understand if stamp duty, conveyancing fees or Lender’s Mortgage Insurance (LMI) will apply to you. They can also advise what grants and incentives are currently available to you.
Lifestyle check-in
It’s not all about how many smashed avos you can actually afford for this step, we promise! Do any of these questions apply to you?
- Could a job change be on the cards?
- Are you due for a promotion?
- Are you thinking of having children in the next few years?
- Is your first home your forever home or is this a “starter home”?
- Do you want to stay in Brisbane or are you considering moving cities in the future?
Getting trusted advice from a mortgage broker who deals with first home buyers Brisbane regularly is crucial to being buyer-ready. It is worth considering your current lifestyle and how it might change to decide what property you are aiming to buy as your first home.
Do your real estate research
We love your Aunty Sharon just as much as you do, but unless she’s a mortgage broker or real estate agent… she is not your best source for real-world property research. Getting your hands on property reports that give you up-to-date indicative price estimate guides, sales and rental histories for the real estate area is a great start. Speaking to local real estate agents in those areas as well as attending open homes and auctions will give you an understanding on prices and how quickly things are moving. This will be invaluable knowledge when you are ready to start making offers.
Save that deposit – how much do you really need?
Most lenders prefer 20% for your first time home buyers loan, but how to save for your first home when 20% of the purchase price is a lot of money? Thankfully for first home buyers, you have options to get you into the property market sooner.
Many lenders will approve first time home buyers with deposits as low as 5%. You also may be eligible for the First Home Loan Deposit Scheme that allows you to avoid LMI.
An expert in home loans for first time buyers will advise you on a range of options including guarantor loans, what LMI would mean for you, and how to show savings as part of your mortgage application.
Get the right home loan for you
The step you’ve been waiting for! How to actually get a home loan as a first time home buyer? Chat to us, of course! As your mortgage broker, once we know how much you can afford and what your property goals, we do all the research to match you with the best choice in home loan interest rates, deals and features available. It is our legal duty to work in your best interests, so you have everything to gain and nothing to lose on chatting with us wherever you are in your home-buying journey.
For financial advice on buying a house or more information about our first home buying guide, contact us today.
Patrick Cranshaw, a Certified Mortgage Professional for over 21 years, founded North Brisbane Home Loans in 2002. His career began with ANZ Bank in New Zealand, where he progressed over 16 years to a Business Banking role in Virginia. After moving to Brisbane in 2000, Patrick led the QLD market for a home loan agency, helped set up the REMAX Real Estate Finance division, and practiced as a broker.
