When considering whether or not to purchase your first home you may have alot of questions, like where do I Start? , What do I need? A good place to start is with a Mortgage Broker. This way you can learn if, or how much deposit you need, how much can you borrow. In the meeting with your Mortgage Broker you will have all the information you need, to get ready to purchase your first home. Your Mortgage Broker may even put together a plan, if you’re not quite ready to purchase your first home.

 

 

Your Job History And Income.

Banks and lenders will look at your current job, how long you have held it for. Don’t worry if you have recently changed job, as some banks and lenders will take into consideration your previous employment, how long you held that position for, was it a similar role and maybe look at reasons why you changed employment (Like a pay increase). This is an advantage to using a Mortgage Broker, as we have a panel of different banks and lenders, and we may be able to find a home loan for you based on your current situation. Banks will also look at your current income to determine how much you can borrow for your potential new purchase.

 

Your Current Credit Commitments.

Banks and lenders will need to see statements for any current credit commitments or other financial commitments that you may have. Credit card statements, personal loan or car loan statements etc. These are financial commitments, so they will vary how much you can borrow for your home loan. Again your will look at these commitments, and find a home loan suitable for your needs. Your mortgage broker will be able to determine how much you can borrow too.

Commitments would include any HELP / HEC’S debt you may have too.

Deposit - Savings

You may need a deposit to purchase your first home. With banks you generally need a minimum of 5% to 8% of the purchase price for your deposit, plus any associated fees. This would generally need to be saved or held in a bank account for a 3 month period, so the bank or lender could determine that you have genuine savings. The more deposit you have the better generally speaking.

Some lenders like Keystart may require as little as 2% deposit plus any associated fees, or you may not need a deposit if you have a guarantor for your home loan.

It is advised to speak to your mortgage broker, as to determine what you need for your situation. There are different options though, when looking to finance your first home and we can look also at your eligibility for various grants, like the first home owners grant and first home buyers assistance account.

Once you are ready to consider pre approval home loan finance, some of the paperwork you may require to apply for a home loan is -

• Latest 1 to 4 payslips depending on the bank and the frequency of your pay.
• Latest payment summary or income statement may be required.
• 3 to 6 months bank statements, where you deposit is held (if a deposit is required)
• Your passport and drivers license (or other acceptable ID, both for the bank and for the first home buyers grant)
• A copy of original bank statements for any other financial commitments you may have (like your latest credit card statement)

There maybe more information required depending on your personal circumstances, and If you would like some more information about what is needed to purchase your first home, please contact Perth Mortgage Broker Group , or call Troy on 0411 229 602, 7 days a week