A Step-by-Step Guide to Buying a House: Advice from an Experienced Mortgage Broker

Purchasing a home is an exciting experience but is also a very complicated and lengthy process. So, to make your house-buying process go more smoothly, follow this step-by-step process, and secure your dream house with professional advice from the experienced mortgage brokers at First Choice!

Step One: Meet with A Mortgage Broker

There are practically hundreds of different home loans available in Australia today, each with its own unique set of features, disadvantages, and perks; this is why a mortgage broker is essential to your house buying process. A mortgage broker will look at what you want to accomplish and discover a house loan that fits your financial and lifestyle needs.

Not only that, but a mortgage broker can assist you in getting your finances sorted to figure out how much you can afford and how much you will need to save for a deposit. Your mortgage broker may also explain any additional advantages you may be eligible for, such as the first-time home buyer’s grant.

Every person’s scenario is unique, so the amount of money you can borrow is determined by:

  • Earnings,
  • Financial obligations,
  • Savings,
  • Credit score and credit report.

Step Two: Find the Best Home Loan Rate

Next, a mortgage broker will compare hundreds of home loans to discover the appropriate one for you, detailing your borrowing capacity and calculated repayments.

When it comes to getting a fair deal on a house loan, the interest rate is crucial. Since a home loan is a long-term commitment, even a slight variation in interest may quickly mount up. For example, even a 0.5% reduction in the interest rate may save you hundreds of dollars over time.

Once you are confident with the mortgage broker’s home loan choice and interest rate, your mortgage broker will help you prepare for the home loan application process.

Step Three: Get a Pre-Approval to Purchase a Home

While a pre-approval is not a compulsory part of a home application, your mortgage broker should recommend one as it gives you a better chance of being approved.

A pre-approval is a preliminary loan from a lender that indicates you are qualified to apply for a loan up to a specified amount. Pre-approval is valid for three to six months and signals to vendors that you’re serious about purchasing.

To obtain a pre-approval, just provide your credit history and other necessary documents to your mortgage broker, who will then check your income and provide you with very specific restrictions on how much you may borrow. With pre-approved financing, you can think logically about your home search.

Step Four: Find a House to Buy

When house shopping, it is vital to find a happy medium between the lifestyle you desire and your financial means.

Mortgage brokers usually recommend their clients make a list of the following:

  • ‘Must-haves’ which you can’t live without, such as property size, layout, public transportation, and schools
  • ‘Nice-to-haves’ which you could live without for the time being, such as design, fixtures, and outdoor space.

Prioritizing the things that matter the most will help you concentrate on the bigger picture. Plus, always keep your budget in mind. Don’t waste time looking at houses marketed for $600,000 if you’ve been pre-approved for $500,000. Keep an open mind about where to search if your preferred suburb is out of your price range. You can ask your mortgage broker to point out some suburbs which you can afford.

Step Five: Building and Pest Inspection

Once you’ve found a home you like, hire a professional to inspect the building, they will highlight any structural problems, moisture, electrical safety, and the cost of maintenance or repairs. You will also need to hire a professional for the pest inspection, highlighting any termite activity and other pest concerns the property has.

These inspections are extremely important as they might save you a lot of money in the long run. You can ask your mortgage broker to connect you to some reputable professionals.

Step Six: Make an Offer

When you are ready, you can make an offer in one of two ways with the help of your mortgage broker. An unconditional offer is a legally binding contract to buy outright if you have secured financing and are confident in the property. Or you can submit a conditional offer, which is a legally binding contract to purchase provided specified criteria are satisfied, e.g., valuation, finance approval, inspections.

Step Seven: Follow the Settlement Process

Congratulations, now all you must do is sign the contracts and pay the deposit!

Your mortgage broker will then send a copy of the signed sale contract to the lending institution, who will prepare for the property appraisal. The lender will provide complete approval of a loan if the valuation result is satisfactory and all other loan requirements are satisfied.

If satisfactory, your mortgage broker and solicitor will transfer the property into your name and ensure the settlement occurs within a specific time frame.

All you do now is pack your belongings and wait for settlement after completing the full process, which typically takes 30 to 90 days. Once the balance of the purchase price and Stamp Duty is paid, the settlement of the property has been made, and you will receive your keys and title deeds.

Your mortgage broker will keep in touch to make sure your home loan is the best fit for your current and future requirements.

Ready to Buy a Home? Get Started Today with a First Choice Mortgage Broker!

The Australian mortgage market can be a perplexing web of options, home loan interest rates, lenders and products. At First Choice Mortgage Brokers, we know how difficult these decisions are for homebuyers to navigate through, which is why our mortgage broker specialists are here to assist you through the entire home loan process!

First Choice Mortgage Brokers have over 30 years of experience in the Finance and Banking Industry. We are well-positioned to assist you with all your financial requirements. Our mortgage brokers are available to visit you at your workplace, home, or location of convenience to discuss your current situation and how First Choice Mortgage Brokers can assist.

From business loanshome loansinvestment propertiesdebt consolidationpersonal risk insurance and everything in between, we offer all mortgage broker services for FREE! So, you can sit back and relax while we do the running around to find the perfect fit for you.

First Choice Mortgage Brokers offers services throughout all major capital cities, including Mortgage Brokers Sydney, Mortgage Brokers Melbourne, Mortgage Brokers Brisbane, Mortgage Brokers Adelaide, Mortgage Brokers Perth and throughout Australia.

Please call First Choice Mortgage Brokers on 1800 111 455 or email First Choice Mortgage Brokers at enquiries@firstchoicemortgage.com.au to discuss your home loan opportunities and any assistance in accessing the home loan application process.

Speak to a Mortgage Broker

You can make an appointment with a First Choice Mortgage Broker consultants by calling 1800 111 455.

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