Today’s first-time home buyers are inundated with a wealth of information on how to get their first home loan. It’s obvious and simple what first time home buyers want when looking for a loan. They want clear information, they want to be educated on the steps required to get a loan, and most importantly, they want someone they can trust to organize their finances. First-time home buyers are often considered vulnerable because it is their first time to buy a home, so they are especially prone to being scammed by bad financial sources who are only looking for their best interests.
If at any time you come across a housing or finance term that you are not familiar with in this article, do a quick search on Google or yahoo to find out the meaning, it will help you tremendously. Alternatively, go to the website at the end of this article and go to the glossary page.
Some areas that will be covered to help first time home buyers with their first home loan will include; the type of borrower you are and the sources of financing. There is also a downloadable buyer’s checklist and a link to the home loan calculator. These issues simply scratch the surface of what is involved. It is recommended that you consult a mortgage broker or other source of financing to fully inform you of what is involved in obtaining your first mortgage loan.
Borrower type
There are a few different types of home buyers that make up this category. The three main ones that will be explained in this article are; investment buyers, non-compliant buyers, and first-time home buyers.
Investment Home Buyers
This particular group of buyers already owns, or is paying for, some form of property. Your parents or relatives may have given you land or property, or bought or used shares in previous property or land to make new purchases.
Because they have existing properties, banks and mortgage brokers can get financing much faster and easier, because they have a collateral behind them (which is like a guarantee in case your finances go bad for the second or third property purchase).
Non-compliant home buyers
Non-conforming home loans are basically designed to finance those people who may find themselves in unusual situations with respect to how their income is paid or how they want to finance their home loan or mortgage. Non-compliant borrowers are also people who may have previously been turned down for a home loan for a number of reasons, such as bad credit, bankruptcy, or unusual income (more on non-compliant areas below).
Banks are often quite reluctant to approve mortgages for borrower-friendly non-conforming loans, and people often find that banks reject their first “standard” loan application.
First-time home buyers
Buying your first home is undoubtedly one of the largest and most exciting purchases you will ever make.
Ideally, you need a mortgage broker or other source of financing to help you through the process of weighing your options so that you have an objective assessment of the best loan for your situation. Mortgage brokers tend to be more objective than banks because mortgage brokers can take a look at a multitude of different financing options from different financial institutions to find the best loan for your situation. Even better, if you can find a mortgage broker who specializes in first-time home buyers, then they will have even better information and help available because they help first-time buyers all the time.
Need help getting your first home loan or First Home Buyers grant assistance? Don’t worry, you are not alone. It is often difficult to know where to start when shopping for a home loan. There are so many options and so many mortgage providers to choose from. First West Home Loans specializes in helping first-time home buyers with the process of obtaining their first home. We guide you through the steps necessary to secure financing successfully.
There are many incentives available to first-time home buyers in Australia, including the first-time home buyer grant, which is $ 7,000. In addition, there is also the option of not having stamp duty on your purchase.
As with all things, there are attached conditions.
How much can you borrow?
Using a home loan calculator can help you get a rough idea of how much you can borrow. Don’t be discouraged if it’s not as much as you initially expected, it’s a rough estimate. For an accurate assessment, contact a mortgage broker or other financial source for more information.