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Your First Home Purchase: tips from Etairos Finance




Purchasing your first home is an exciting and key milestone in your life, but the process can be daunting with so much information out there and industry guidelines that change rapidly. It's easy to feel overwhelmed but Etairos Finance can help you smooth out the process. With over 26 years of experience and thousands of satisfied clients, we are here to guide you every step of the way.


Understanding Loan Criteria


Before diving into the home-buying process, it's essential to understand the criteria for obtaining a loan. Here are some key factors to consider to make the process easier and to make yourself attractive to a potential lender:


1 Your Employment Status


  •  Are you employed full-time, part-time, or casual?

  •  How long have you been with your current employer? If less than 3 years, who was your previous employer?


2 Income


  • What is your annual salary?

  • Do you receive bonuses, commissions or regular overtime? These need to be included separately from gross, base income


3 Savings


  • Do you have savings? Most banks will want to see six months of regular savings.

  • You typically need between 5% of the property's value in savings.


4 Credit Score


  • Do you know your credit score? Most scores are out of 1000, with a score above 650 being desirable.

  • Have you obtained a credit report? This free report, which you should obtain annually. It contains details of your debts and credit applications.

 

First Home Buyer Benefits


Grants and exemptions


If you are a first-time homebuyer, you may be eligible for various benefits and consesions, including government grants. These can make a huge diffence to your ability to purchase. First Home Buyers Grants usually require you to purchase a new property and come with maximum purchase amount limits. Additionally, as a first-time buyer you might be eligible to receive reductions or exemptions in stamp duty. Upper purchase limits can vary state by state but generlly sees First time buyers paying no stamp duty on purahces around $500,000 for homes your intend to live in.

 

Mortgage Insurance assistance


In normal circumstances, if your deposit is less than 20%, (which more often than not, it will be) you'll be required to pay for mortgage insurance. This insurance protects the bank in case you default on the loan but is an additional cost to you. However, as a first-time buyer you might be eligible to particiapte in a federal government scheme that can cover this expense.


Pre-Approval and Budgeting


Before you start looking at properties, it's crucial to understand what you can afford. A pre-approval, which a mortgage broker like Etairos Finance can arrange, will give you a budget to stick to. This process considers your income, personal debts (like credit cards and car loans), and overall financial situation to determine your borrowing capacity.


Parental Assistance


In situations where you have good incomes but for various reasons, dont have neought savings, your parents might be able to assist by using their property as collateral (security guarantor). This can help you secure your first home sooner and save you considerable expense.


Final Tips


  • Speak to a Mortgage Broker: With so many recent industry changes and complex guidelines, a mortgage broker is best placed to guide you in this process and can help you avoid approching lenders whose policies can't assist you.

  • Understand Your Financial Situation: Knowing your income, savings, credit score, and debts will help streamline the loan process.

  • Get a Pre-Approval: This step is essential for setting a realistic budget and boosting your confidence in your new home search.

 

At Etairos Finance, we are committed to helping you navigate the home-buying process with minium fuss and maximum results. Contact us today on 0402 684 199 to get started on securing your first home.




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