Buying a home for the first time can be quite intimidating, especially if you’re not familiar with the process and requirements. You may have heard of other people’s experiences and how they had a hard time acquiring their dream home.
Just by that alone, you already have doubts and second thoughts about getting one yourself. The good news is, there are many ways for you to prepare for the ordeal. Yes, it isn’t easy, but that doesn’t mean that it’s impossible.
There are a couple of factors to consider before you may even begin applying for a home loan, and knowing them all will not only make things easier for you but may also boost your chances in the long run.
1. Settle All Your Debts
Loaning companies are stringent when it comes to their processes, much so that they may require you to present paperwork indicating your past debts. The thing that they want to see from those requirements is your borrowing and spending habits. It’s okay to point to a debt that you’ve already paid for, as that will show how reliable you can be when it comes to payments.
A long record of unpaid debts may not help your case, mainly if you haven’t exerted enough effort to at least provide any sort of deposit to lessen them at all. In that case, you should consider paying off all your debts first before you submit your home loan application.
2. Consider Every Option That You Have
Don’t just immediately apply to one mortgage company. There are a lot of lenders in the market today with varying policies and interest rates. The best thing about being a borrower is that you have many options to choose from. No one can ever limit or stop you from picking the one that will be most advantageous to your cause of buying a home.
You can even inquire about their requirements, a notable feature that will help you prepare all the necessary paperwork. Of course, you still have to follow through and provide all of those, but at least you will be able to determine first-hand which ones require the most paperwork and which ones will only ask for a couple of them.
3. Ask for Stamp Duty Concessions
In Australia, first-time homebuyers may ask for stamp duty concessions. To clarify, stamp duties are the taxes that people have to pay towards the government when legal documents are involved, usually in transferring property. If it’s just your first time, you may ask for a concession, a sort of appeal or discount towards the tax amount.
This may not always be granted, but since it’s your first time encountering such payments, the government may decide on a compromise to grant your request. This will enable you to save a lot since some stamp duties may reach up to thousands of dollars.
Being a first-time home buyer can be overwhelming for some, especially while borrowing a home loan for deposits. The good news is that everyone has a fighting chance to attain their dream home, as long as they prepare all the requirements to prove good paying habits and spotless debt records.
By sorting out their options, settling all their past debts, and requesting a concession, they may even improve their chances. So stay positive, be motivated for that new home, and choose a lender that will give the highest amount possible.
If you’re looking for assistance on your home loan deposit, FinanceCorp is at your service. All of the Finance Managers at FinanceCorp are fully qualified, trained and experienced mortgage professionals who live and breathe finance. Contact us today!