Steps to Buying First Home: How a Mortgage Broker Helps
Buying First Home: What’s the Plan?
To fully get the best experience possible -and not to mention the best house too, there are several tips and tricks out there, here are some to name a few:
ALWAYS CHECK YOUR CREDIT SCORE - Your credit history is really a big deal. This determines whether or not your fit for buying your first home. doing this in the earlier part of your buying process allows for more time fixing your scores. The minimum credit score to aim for is 750 and above. When you aim for these scores, you pay better and more affordable rates for home loans and mortgages.
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GET YOURSELF A MORTGAGE BROKER- Mortgage Brokers are the Gym Coaches of Real Estate and Loans, getting yourself a mortgage broker also means opening the doors to convenience. By doing so, you get the best rates possible that otherwise would not have happened if you chose to go through the journey alone.
ALWAYS KEEP YOUR FINANCIAL STATUS IN MIND- buying a House also means spending a lot. Even after the Purchase of your house, you have to keep in mind that the spending does not end there, there will always be purchases that have to be made and bills that have to be paid.
MAKE THE WISH-LIST OF YOUR DREAMS- Make a list of what you want your home to have, Where you want it to be, and who you will be spending the duration of your time in the hood with - and by that I mean, also consider your neighbors thoroughly. Doing this saves a lot of time both for you and your Mortgage Broker.
BE PRACTICAL- You do not want to make the common mistake people do when buying their first home. That is, most people look for homes beyond what they can actually afford. Although you made a list of what you want your home to be, always keep this in mind: ‘Is this Practical? “
“ I Want to Do This on My Own”: Mistakes Most People Commit Without a Broker:
Buying your first house more often than not lead to Spur of the moment decisions. and opting to go through this journey without professional help sometimes cause many to commit these mistakes:
READ MORE: First-time Homeowners: Fixed Vs. Variable Rate Loans
OVERSPENDING AND OVER-EXTENDING- most First time home buyers, due to their excitement and eagerness to move into a new home, overlook their spending and go out of the budget. Often, they create a budget that’s unrealistic and it all goes downhill from there.
NOT KNOWING ABOUT FIRST HOME OWNER CONCESSIONS- without the help of a mortgage broker, you probably may overlook the benefits that the government put up for you. Most new homeowners won’t even know about the First Homeowner Grant Because of this.
NOT KNOWING HOW MUCH YOU REALLY CAN AFFORD- A lot of people overlook their actual budget all because they want to get the best of the best without putting much thought on how much they actually have. A lot of people buy a house before they are even financially ready and this becomes a problem the longer you get into the process.
SETTLING FOR THE FIRST- it is always best to look into your options. Whether it’s about your loan, investments, rate quotes, or even your choice in housing. Another common thing most homebuyers commit without the presence of a professional to give them advice is that they settle for the first thing they find or receive.
DOWN PAYMENTS- it’s a big no-no when you make a down payment that is way too small or even none at all. This is because having a bigger down payment qualifies you for a more favorable interest rate.
Darin Hindmarsh is the founder and CEO of Intellichoice Finance, a broking firm based in Brisbane. He's been providing financial and broking services in the past 18 years. Hindmarsh is also finalist in the 2020 Australian Mortgage Awards - Pepper Money Broker of the Year – Specialist Lending. To jumpstart your home loan application, visit their home loan online application page today.!