Home Loan Guide For First Time Buyers
Published by MFAA
Step 1: Speak to an MFAA Accredited Finance Broker
The most important step you’ll need to undertake is to speak with an MFAA Acreddited Finance Broker. Use the finance broker search feature on the Essentials of Borrowing homepage to find an MFAA member in your area. After you’ve made an appointment make sure you listen to what they have to say, it may save you time and money
Step 2: Budgeting
If you plan to purchase a property, it’s always essential to budget your finances and save, save, save. If you find yourself wondering where to start or how best to budget your monthly expenses, speak with your MFAA Accredited Finance Broker, they can help you to get on the right path.
Step 3: Necessary documentation
Gather all your necessary documents to take to your finance broker, including:
- sufficient proof of id for each applicant;
And details of:
- any debts or loans to be paid;
- recurring income (ie rental income, pensions etc);
- your living expenses;
- your previous address, if you have lived there for less than three years;
- your previous employer, if you have worked at your current role for less than tow years.
Depending on your circumstances, your finance broker may need more information. Just ask.
Step 4: Important conversations
Your MFAA Approved Finance Broker will discuss your plans and your circumstances with you to determine what you can afford. Your adviser will also provide statutory documentation to initiate the lending process and work out for you what loan products will be appropriate in your circumstances.
Step 5: House & home research
Before you set out inspecting properties and measuring room sizes, it’s a good idea to first undertake some research. It’ll save you a lot of time and potential disappointment if you first research properties in your desired areas and using the information your adviser has given you. Remember, don’t place a deposit on a property until your adviser tells you that unconditional finance has been offered by a lender. A little work now can save a lot of disappointment later.