It is always an exciting time when you decide to buy your first home. For many, it is that first permanent step towards starting a family or finally feeling independent. At the same time, it can be an extremely stressful experience if you are unfamiliar with the process.
5 Important Questions to Consider
The Macarthur District is one of the fastest-developing areas in the Sydney metropolitan region with many new residential areas opening up. If you are a first home buyer zeroing in on this region, it is worth considering these questions before you make a decision:
- Have you saved enough? In the present market, you might be able to get a home loan for as much as 95% of the purchase price – if you have guarantors willing to support you. But as a guideline, most financial experts suggest putting up a deposit of at least 20%, with enough to spare for other costs like stamp duty, legal fees, inspections etc.
- Do you have a steady income source? In order to be approved for a home loan, at least one member of your family should have a steady income. In addition, you should have good credit history and saving habits. Your solid employment history and savings account history are very important when applying for a home loan.
- Have you saved for a rainy day? If you decide to get a variable rate loan, your repayments will increase if the interest rate goes up. Having some additional savings tucked away is useful in this situation.
- Do you have other debts to pay off? Before taking on a 25 year home mortgage, ideally you will have paid off any other debts or loans. If your car loans and any credit card debt have been paid off in full, your borrowing capacity will also go up, and you will find it easier to make the monthly payments.
- Have you been pre-approved for a loan? Though a pre-approval is not essential before you start looking at properties, it can give you the necessary confidence that you can get a loan from a particular vendor. Our Mortgage Options can help get you compare different options before you make a final decision.
How We Can Help You Now
If you have answered ‘Yes’ to all these questions (or at least the first three), you are in a good position to become a first home buyer. Our Mortgage Options can help you choose the most suitable mortgage for your individual circumstances.
With specific Macarthur region expertise and 49 lenders’ products for you to choose from, Our Mortgage Options is the perfect partner in your search for your first home. Call us on 02 9068 6644 to find out more about the different mortgage options available to you.