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First Time Mortgage

the big thing to know for the first time owners in Victoria they no longer get the first time home owners grant unless they are building a new property, and they do still get a fifty percent reduction in stamp duty, so with first home owners the biggest thing is deposit, because banks require you to have a minimum of five percent deposit plus costs for your First home owner normally it’s around about 3% issue costs, so what we normally say to a first home buyer is you need to have about eight % of what your buying, so with first home buyers I mean currently with spring 2016 if you wanted to buy, for a first time buyer normal buying a unit or a small house in lest say the Frankston area they will be spending about 400,000, for them the 8% deposit really means that they’ll need roughly around about $32,000 that’s the minimum the bank are going to need to see for them to be able to get in on a home.

Another question that comes up a lot with first-home buyers is you know the whole process what do they have to do and again this is what we speak to them about, the free conveyancing and how we handle it and make it all a little bit less stressful for them and sort of take the process away from them, so pretty much they pay the money and the deposit and they move into a house stress-free hopefully, so for your first time home buyer who’s looking to get into the housing market we will always advise them whether they feel they’re ready or not, speak to a mortgage broker, we will you go out and visit lots of people and we won’t do a loan for them for maybe two years that’s fine it’s part of our job, we will come out give you some independent advice as too whether you can ( A) get a loan, you have enough deposit you know for the area that you want to buy in.

If you’re there then obviously we will step through the home loan process and we would always advise first time buyers to get a pre-approval with the lenders, most lenders will write you a pre-approval they will assess you for lending, so what pre-approval means is that we will take an application from you but just without you finding a property, so they’ll assess your income your savings and your credit history, we will present that to the bankers on application, they’ll assess you as a person as to whether they’re willing to lend you that money when you find a property to live in, they will then issue you with a pre-approval which generally lasts three months with most lenders some will extend that to six months, so what that means is that you can then go out go to a home open or even go to an auction knowing that you’re good for that money from that lender, subject its always subject to the property being acceptable.

And there are exceptions to some banks will not lend on certain properties but generally in the metropolitan area and on Mornington peninsula there isn’t any of them around, so then you’re open to go and make an offer, once you’ve made an offer that you will be issued with contract by the real estate agent which is called a section 32 we then provide that to the lender for you and then your loan becomes unconditional, they send out a loan contract to you, you sign and then you wait, if you want to start the home loan process we always say to people what’s good to get together is your last couple of pay slips hopefully your last pay as you go summary that you received from your employer at the end of the year, it tells you what you earned and then pick up the phone give us a call we’ll come out and see you and we will take you through the home loan process step-by-step and any additional information that we need you to get we will let you know what it is

Written by

Stephen Bonfield, the Managing Director, previously worked for one of Australia’s major home loan companies as an independent mortgage broker. Steve used this experience to set up his own mortgage broking company - a company that places customer needs at the forefront.

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