Today’s first-time homebuyers are inundated with a wealth of information about getting their first home loan. It’s obvious and simple what first-time homebuyers want when looking for a loan. They want information that is clear, they want to be educated on the steps involved in getting a loan, and most importantly, they want someone they can trust to organize their finances. First-time homebuyers are often seen as vulnerable because it’s their first time buying a home, so they’re especially prone to being scammed by bad finance sources who only look out for their best interests.
If you ever come across an unfamiliar housing or finance term in this article, do a quick Google or Yahoo search to find out what it means, it will help you a lot. Alternatively, go to the website at the bottom of this article and go to the glossary page.
Some areas will be covered to help first-time homebuyers with their first home loan; 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 topics just scratch the surface of what is involved. It is recommended that you consult a mortgage broker or other financing source to fully educate you on what is involved in obtaining your first home loan.
type of borrower
There are a few different types of homebuyers that make up this category. The three main ones that will be explained in this article are; investment buyers, non-conforming buyers and first-time home buyers.
Investment Home Buyers
This particular group of buyers already owns, or is already paying for, some type of property. Their parents or relatives may have given them land or property, or may have purchased or used shares in prior property or land to make additional purchases.
Because they have existing properties, banks and mortgage brokers can get financing much quicker and easier, because they have collateral behind them (which is like a security back in case your finances go bad for the purchase of the second or third property).
Nonconforming Homebuyers
Non-conforming home loans are basically designed to finance those people who may find themselves in unusual situations regarding how their income is paid or how they want to finance their home loan or mortgage. Non-conforming borrowers are also people who may have previously been turned down for a home loan for various reasons, such as bad credit, bankruptcy, or unusual income (more on non-conforming areas below).
Banks are normally quite reluctant to approve mortgages for those who fit the non-conforming loan borrower and people often find that banks reject their first ‘standard’ loan application.
first time home buyers
Buying your first home is without a doubt one of the biggest and most exciting purchases you’ll ever make.
What you ideally need is a mortgage broker or other financing source 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 homebuyers, then you’ll have better information and help available because they help first-time homebuyers all the time.
Need help getting your first home loan or assistance with a first-time homebuyer grant? Don’t worry, you’re not alone. It is often difficult to know where to start when looking for a home loan. There are so many options and many mortgage providers to choose from. First West Home Loans specializes in helping first-time homebuyers with the process of obtaining their first home. We guide you through the steps necessary to successfully secure financing.
There are many incentives available to first-time homebuyers in Australia, including the first-time homebuyer 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 conditions attached.
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 appraisal, contact a mortgage broker or other financial source for more information.