First Home Buyers
At Brisbane Finance we understand that buying your First Home will be an exciting and challenging time. Our goal to help you through the process and make it as easy as possible to understand what you need to know in achieving your desired result. To make it easier to understand all you need to know about purchasing your First Home, we have put together some steps that will help you through the process.
Step 1 - Planning and Saving
Probably one of the most important steps is planning for your First Home purchase. Without the proper planning in place you may find yourself disappointed if you do not achieve your goal.
Generally; Australian Lending Institutions require a minimum deposit between 5-10% of the purchase price. While some Lenders will lend up to 95% of the purchase price there can be significant other costs including Government Fees and Charges such as Transfer Stamp Duty. Another major cost is Lenders Mortgage Insurance that will apply if you are borrowing greater than 80% of the purchase price. In addition to these you have conveyancing fees as well as building inspections charges.
Lenders will also like to you be able to demonstrate a saving history if you are borrowing 90% [in some cases 85%] or more of the value of the property. Genuine savings can be hard to understand for some borrowers, what it means is constant money going into a dedicated savings account and trying to keep those funds in the account under you are ready to purchase. Lending Institutions will scrutinise your Bank Statements to make sure that the deposit constitutes proper savings. Some Lenders will take Rental Expenses as part of genuine savings.
To help with your savings goal, it is important to start putting together a budget. This will be both important now and into the future. One thing to remember when purchasing your First Home is that you will have this financial commitment for many years to come and interest rates change all the time. A lot of First Home purchasers are more excited about just getting into their home rather than realising the financial commitment that they are about to undertake.
Step 2 - Finance
Brisbane Finance as your Home Loan Finance Specialist we will:
Meet with you at a time suitable to discuss your financial needs.
Complete a Needs Analysis & Preliminary Assessment
Provide a comprehensive written report including: -
o Loan options
o Facility alternatives / comparisons
o Suggest additional services to compliment your loan package
o Make recommendation on Lender
o Provide list of documentation required to proceed with application
o Organise Home Insurance Quote & Cover
4. Organise for Building and Pest Inspection [if required]
5. Organise the First Home Buyers Construction Grant [if applicable]
6. On receipt of all information / documents required
o Complete the Loan Application
o Forward it to the chosen Lender for assessment
7. Obtain Loan Approval
o Advise you of the Bank's approval
o Forward written finance approval to your Solicitor
8. Arrange Letter of Offer & Loan Documentation
o Check documentation to ensure that they reflect approval
o Wayne is able to witness execution as Commissioner of Declarations
o Monitor and coordinate settlement process with Lender / Lawyer
10. Client Care Programme
o Arrange Representative to provide Life Cover quote [if required]
o Be available to discuss any loan related matter – at NO COST
o Provide assistance / advice in ALL finance issues – at NO COST
o Annual review of Loan – at NO COST
Step 3 - Finding the Right Property
At Brisbane Finance we can assist to help you find a property that you can afford. After determining the level of loan repayments that you are happy with we can then calculate the preferred purchase price.
When you think you have found the right property for you let Brisbane Finance know so that we can use our resources to produce a comprehensive report on the property so that you can make an informed decision to assist with your negotiations. You will find our reports very helpful.
When you have found the right property, you then will start negotiating the purchase price. Once you are happy with the price and prior to signing the contract get your Solicitor to look over the contract to make sure that it is correct. If you do not have a Solicitor we would be happy to recommend a legal firm that will examine the contract and provide initial advice at no cost.