Like taking your first driving lesson before you gain the confidence to know how to drive on the country’s most dangerous roads, getting a mortgage for the first time is just as difficult to master, especially with the variety of options available and the mortgage jargon used that you may never have come across before.
Fortunately, there are professional mortgage brokers in Baldivis who can guide you through the whole process so that you can gain a better understanding and know the most sensible way forward for you and your family.
The property market is constantly changing and so are the interest rates and the deals from the many banks and lenders that are willing to provide money for property purchases in today’s difficult financial marketplace.
Once you understand all of the costs associated with purchasing a property and then managing and running your first home, it can all become much clearer to you and you’ll be able to go ahead and buy your first home.
What Fees are Required?
Once you’ve talked through your income and expenses before and after you purchase a property, with your home loans expert in Baldivis, you will understand how much money you need to save before you can purchase your first home.
While banks vary in their requests, you will have legal fees to pay for the purchase of the property and you will need to find money from your savings to pay for inspections to find out about the quality of the build of the home you wish to purchase and perhaps pest inspections, depending upon where your property is going to be purchased.
Some banks and other lenders will charge you a fee for choosing a mortgage from the company and if you borrow more than 80% of the value of the property, the lender might charge you an insurance fee to protect them in case you can’t keep up your mortgage repayments, which won’t protect you if you can’t pay your debts.
You will be charged a fee to register the mortgage and your state government will charge a fee to register the transfer of the property into your name. Depending upon the purchase price there may be stamp duty and an amount of land tax to pay, but as a first home buyer the government has a scheme that can pay money to you to offset some of these charges or use as a deposit towards your property; it is currently set at $7000 for Western Australian purchases.
You Will Need to Prove Your Savings
When you do apply for a loan from your lender they will want to see proof of your deposit money being available as well as understanding whether you are going to continue any personal loans, credit card payments and any other outgoings that are financial commitments, after your mortgage begins.
When selecting a home loan in Kwinana or elsewhere, your mortgage broker will talk to you about your credit history and how it needs to be as close to perfect as possible before your mortgage application is processed and they’ll want to be able to prove that your employment history looks good and confident for the future.
Planning ahead helps you understand more about your first home and the buying process. Your mortgage broker will be able to guide you through any matters that you don’t understand today so you can go ahead with a full clarity of understanding your purchase and your mortgage commitments as though you were a seasoned purchaser.
