First Home Buyers
LET’S FACE IT, BUYING YOUR FIRST HOME IS A BIG STEP. AS WELL AS THE FINANCIAL SIDE OF THINGS TO THINK ABOUT, EVEN JUST THE PROCESS OF BUYING CAN SEEM CONFUSING.
With so many different people involved and all that paperwork, it can be hard to know where to start. But it can also be fun. Finding your perfect place, and planning how you’ll furnish and decorate it is really exciting.
So don’t worry, if you’re feeling a bit overwhelmed, help is at hand SAF Finance Group will guide you through the process. To make things a little easier, we have created a step by step guide to help you understand the process.
STEP 1 – WHAT CAN YOU AFFORD
HOW MUCH MONEY WILL I NEED?
As a first time buyer, you might not have a large bundle of cash to buy a new home. It’s more likely you’ll need a loan secured against your new home. Your loan repayment are usually set on a 25 to 30 year loan term, in monthly installments.
So before you start house hunting, work out how much you’re willing and able to afford in loan repayment. Take in to consideration, your spending and saving habits to ensure that future life changes wont impact your lifestyle.
SAVING FOR A DEPOSIT
It’s important to make sure your savings can cover the costs of buying your first home. You’ll need to put down a deposit (usually at least 10% of the purchase price) on the property.
OTHER UPFRONT COSTS TO THINK ABOUT
It’s important to get the full picture of what buying your new home will cost. As well as the deposit and purchase price, there will be other one-off fees that will be added to your new loan. Each Lender has different fees and charges and this may also help determine which lender is better for your particular situation.
HOW MUCH COULD YOU BORROW?
Contact us at SAF Finance Group, we’ll give you an understanding of what you will be able to borrow and which lenders and products are available to you, ensuring you are able to meet long and short-term goals.
We will complete a full finance assessment and loan comparison, ensuring you can afford the loan repayments even if interest rates rise. All fees associated with a loan will be outlined so you know exactly what is required from you.
At this stage, we suggest that we apply for a pre approval with your preferred lender.
Working out what you can borrow and having a pre approval in place might be easier than you think. This could put you in a strong position when making an offer on a property. It’s proof that you’re serious and can get the money to buy it.
PRE APPROVAL PROCESS:
They’ll run a quick check on things like your address history, current earnings and any outgoings such as loans and credit cards that you might have.
Of course, the pre approval depends on a satisfactory valuation of the property to be mortgaged and the information you’ve given is confirmed.
We recommend that you obtain a copy of your credit report from Veda prior to applying for finance.