3 Simple Steps to Getting A Home Loan For First-Time Buyers

by | Sep 9, 2021

Thinking about buying your next home and getting a home loan? Getting a home loan for first-time buyers is an exciting process that involves many elements which you should be aware of before making any final decisions. Things such as how much you can afford to borrow, how much you need to save and what sort of home loan best suits your needs.

The following is a brief guide on the 3 Steps you should take when getting a home loan for first-type buyers:

STEP 1: Decide how much you want to borrow

When deciding how much money to borrow, it’s important that you don’t stretch yourself too thin. Sometimes you can get lost in the excitement of buying your first home and start dreaming so big that you wake up with a few sleepless nights worrying about how much money is actually required.

The first thing to ask yourself is: What do I want to buy? Is it a house or a condo? How many bedrooms? How close to the city is it located? These are all questions you should address before looking at any properties. A great place to start is to check out a mortgage calculator.

Once you’ve determined what sort of home you’d like to buy, make a list of three or four potential places and their individual prices. This way, when talking with a mortgage broker, they will have an idea as to how much loan they can provide for you. Remember that their job is to find the best deal for you, so take advantage of every bit of knowledge they have.

STEP 2: Get your finances in order to secure the loan

Before walking into a bank and trying to secure a loan, it’s always good practice to get your finances organized and work out how much money you will be able to afford in repayments for your new home.

It’s important that you speak to someone who knows what they’re talking about, such as a financial planner.  A finacial planner can advise you about the best way to work out how much you need to borrow and then figure out what sort of loan will suit your needs. This is where a mortgage broker comes into play, as they will be able to give you an idea as to what you can afford and then take that information back to a financial planner.

STEP 3: Apply and get the home loan

With your finances all sorted out, next comes the fun part – finding a home loan that suits your needs from a bank or non-bank lender. If you’ve been through the first two steps, you’ll probably have a good idea as to what sort of loan you’d prefer.

There are several different types of home loans available on the market which is why it’s vital that you speak with a qualified team in the real estate industry who will be able to explain your options and secure a deal that best suits your needs.

These are the high-level first three steps to getting a home loan for first-time buyers. Take the time now to sit down and really consider what sort of loan suits your situation best. It’s a big decision with serious consequences if you make the wrong choice, so follow these simple guidelines and you shouldn’t go wrong.

Written By Robyn Carrara

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