First Home Buyers listen up!

If you’re looking to enter the property market for the first time it can be a little overwhelming but Two Broker Girls are here to help!

Here are a few of the most common questions we get asked by our clients who are first home buyers. 

Do I need a deposit?
Well this can be a little complicated, so let’s break it down.

When purchasing a property as a first-time home buyer, you may be able to secure the home with no money down or a very small deposit, you can also have a guarantor help you on your application (someone who goes on the loan using their assets as security). However this way will likely require you to pay mortgage lenders insurance, which is an extra expense long term. 

On the other hand, if you are able to put down a larger deposit (usually at least 5% of the purchase price), then this will in turn help lower your monthly payments due to smaller loan amounts being taken out. In addition, most lenders will also offer better interest rates

Is there assistance available for first home buyers? 

Yes! If you're a first home buyer, there's plenty of assistance available to help make your dream of owning a home a reality. From government grants and subsidies to mortgage brokers and financial advisors, it can be overwhelming trying to figure out where to start. But don't worry – we've got you covered! Our team is here to offer advice and assistance so that you can navigate the process with ease. So take that first step towards homeownership – we'll be right by your side every step of the way! 

What documents do I need?

There’s a lot more paperwork involved when trying to get a home loan but lucky we do all that for you! 

Here's what you'll need:

- Identification (Driver Licence or Passport)

- Tax Returns and / or Group Certificates/Pay Slips for 2 years prior to applying for the loan;

- Bank Statements for the past 3 months;

- Credit Reports;

- Proof of Income and Employment;

- Proof of Assets and Liabilities;

- Evidence of Deposit Funds.

So take a deep breath, have all the above documents ready and you'll be well on your way to getting that loan approved!

How do I know what to budget?

Once you have an idea of how much you can afford, it’s time to develop your budget. As a first home buyer, this might seem daunting but creating a budget doesn’t have to be overwhelming — in fact, it can be downright inspiring!

Start by listing all of your income sources like wages and investments. Then list all of your expenses including rent, food costs, bills and entertainment (yes, even that weekly takeaway counts). Having everything written down will help you get a better understanding of where your money is going.

Now comes the fun part: setting goals for yourself! How much do you want to set aside each month for saving? What kind of house are you looking to purchase? Once you’ve got your goals sorted, break them down into smaller chunks and create a plan of action.

Want to discuss more about your situation? Book in a discovery call here>.

Sarah x