Three useful tips when buying your first home!

Buying a property for the first time can be like taking a step in the dark for many people. Having a simple guide to follow can help shed some light on their new journey.

With so many factors to consider it can be tricky to know where do you start. Take a look at some tips that can help get the first-home wheels in motion;

1. It’s worth considering a mortgage broker

A mortgage broker can simplify the borrowing process by doing the legwork and having the knowledge and experience of borrowing from different financial institutions. Their access to various lenders, each with different rules and guidelines allows for the broker to match the borrower with the right product for them. At Ray White Frankston we recommend contacting Michael Visilaras from Loan Market on 0411 708 072.

2. Bigger is better!

It’s no secret, the bigger the deposit, the better. Mapping out a savings plan and some financial discipline will take away some of the pain of saving. Typically, the lender looks for a deposit of 20% of the property value. Having this amount means the borrower won’t need to pay for mortgage insurance and maximises the chance of approval.

3. Know the property

If it’s an existing property, thorough research should be done as the buyer will know little about the property. A professional inspection helps determine the condition of the place and raises awareness to the buyer of any pre-existing issues such as termites, structural damage or other problems like leaks. This could help the potential homeowner save thousands of dollars in the future.

Source: www.loanmarket.com.au