“The Ultimate Guide”

We get that purchasing or being a first home buyer Brisbane can be exciting and intimidating. It’s a big decision right? Let us guide you as your purchase your first home. We are first home buyer experts and can provide valuable advice
on government grants and initiatives to save you money as a first home buyer. We will connect you to conveyancers, building and pest inspectors, real estate agents, and other property purchasing professionals who you will need
on your Building a home in Brisbane journey. Based in Brisbane, we help home buyers Australia-wide. We’re knowledgeable, energetic and genuine. Experienced in the game and committed to the goal. We’re the best of the best and offer
licensed home finance brokers and lenders to assist you in crushing your property goals!

We’ve compiled our best advice to support you as you go through the process of being a first home buyer Brisbane.

Table Of Content

Step 1: Evaluate Your Finances

Step 2: Choose the Type Of Mortgage

Step 3: Ask Your Mortgage Lenders For Estimates

Step 4: Obtain A Mortgage Pre-Approval

Step 5: Find a Real Estate Agent

Step 6: Purchase a Home

Step 7: Be Ready To Submit an Offer Quickly

Step 8: Closing Expenses

Step 9: Hire a House Inspector

Step 10: Insurance & Closing

Step 1: Evaluate Your Finances

Check your credit reports and score consider your spending plan, and decide whether you can afford a down payment and closing costs.

Credit

Although you may still acquire a loan with a score as low as 500, having a higher credit score will allow you to get more advantageous loan terms that will save you a lot of money throughout your mortgage.

Why lenders are concerned with your credit score?

You might be hesitant to lend money to a buddy who typically takes a long time to repay you or never does. Lenders have similar attitudes toward mortgages. They want to lend to borrowers with a history of making timely payments to
creditors.

You’ll also need a low debt-to-income ratio, a solid financial history, and a high credit score for the lowest mortgage rates.

The Ratio of Debt To Income

Look at your debt-to-income (DTI) ratio to see how much debt you have compared to your income. Conventional wisdom states that 28 percent of your total monthly income should be set aside for housing expenses, which include mortgage
payments, property taxes, homeowners insurance, and homeowners’ association dues. The ideal expenditure is 36 percent, including housing expenses and all of your monthly loan payments.

Down Payment

The type of mortgage, the lender, and your financial situation all affect the minimum down payment. First home buyer most significant obstacle is finding the money for a down payment on a home.

But how much of a deposit do you require? Well it depends on the loan type, your lender, and your priorities.

What is a Down Payment?

A down payment is money you put down in advance to buy an oversized item, such as a house. The remaining purchase price balance is repaid over time through a loan.

Savings

Additionally, you’ll need money aside for furniture purchases, moving costs, and any renovations or repairs you might want to undertake before moving in. All of this is on top of the money you should ideally have set up for emergencies.

Step 2: Choose the Type Of Mortgage

Mortgages come in a wide variety of forms. The first thing you need to do is choose the type of mortgage you want. Fixed or variable?

Fixed-rate loans often have slightly higher interest rates, but because the rate is fixed during the loan’s term, you always know your monthly payment.

FINANCD offers various financing programs, including conventional and FHA loans. If you don’t satisfy specific standards, you could not be eligible for some programs, so be sure to read the fine print to discover which ones might be
a good fit for you.

Step 3: Ask Your Mortgage Lenders For Estimates

Comparing loan offers is best done by first obtaining a rate quote because mortgage rates fluctuate widely and frequently. You should choose the loan with the lowest interest rate because it will result in lower monthly and yearly
expenses.

Give some basic information, such as the loan amount you’re looking for, your down payment, and your credit score range. You can frequently get a quote for free through the lender’s website, such as FINANCD.

Step 4: Obtain A Mortgage Pre-Approval

You’re prepared to get preapproved for a mortgage once you’ve received quotations from your lender. A pre-approval is not a finalized offer; instead, it is a lender’s initial promise to advance you a particular amount of money.

Obtaining one is essential before you begin looking for a home because sellers won’t consider your offer unless they know that you have the financing arranged. Be ready for your mortgage lender to examine every area of your financial
situation when you ask for preapproval. The papers you prepared in advance will be helpful in this situation.

Step 5: Find a Real Estate Agent

A real estate agent may greatly assist the first home buyer process since they are familiar with the area and the housing market there and can offer insightful information about communities, school systems, and other factors.

Asking for a buyer’s agent suggestions is an excellent place to start if you’re unsure how to find an agent. Many agents get their clients through recommendations. Additionally, you can look up top-rated agents online and read client
reviews.

Step 6: Purchase a Home

The enjoyable part is now. So that you don’t waste time looking at properties that don’t suit your needs, discuss your budget and main priorities with your agent. Even if it appears the ideal fit based on an internet description and
images, try to visit homes in person before making a decision.

Before being a first home buyer Brisbane, Visit the house and the surrounding area when it is being shown. How would you feel if you learned that your neighborhood had too much traffic, was close to an airport, or had poor-performing
schools?

Frequently, the location is just as crucial as the actual house.

Step 7: Be Ready To Submit an Offer Quickly

Be prepared to submit an offer quickly if you see a home in your ideal neighborhood and price range and like what you see. To assist you in making a competitive offer, your realtor might research the comparable property that has recently
sold in the neighborhood.

Prepare to bargain on a price.

Your offer can be accepted, rejected, or countered with a different price once the seller has been provided with a purchase agreement. Utilize your realtor’s expertise to bargain with the seller for the most significant result.

Step 8: Closing Expenses

Once your offer has been approved, you should submit your mortgage application. You will receive a loan estimate three days after submitting your application, including information such as the loan terms and projected closing fees.

Step 9: Hire a House Inspector

After the seller accepts your offer, engage a home inspector to assess the property. You can find a house inspector online or have your agent recommend one. You should be there for the inspection with your agent so you may get an explanation
of any problems. As soon as you obtain the inspection report, discuss your options with your representative and become a first home buyer brisbane.

The seller could not agree to make repairs if competing offers don’t obligate them to pay for repairs if the inspection reveals significant issues. Suppose the seller won’t fix the problems, and your purchase agreement includes an
inspection contingency. In that case, you might decide to walk away.

Step 10: Insurance & Closing

Homeowners insurance is a requirement of mortgage lenders, protecting your investment and theirs. Get estimates from other insurance providers or work with an insurance broker who can compare your prices because insurance charges vary.

Prepare your move

Depending on how quickly you intend to relocate, you should probably start preparing for the relocation before the closing. Make arrangements for new service with your utility, cable, and internet providers as you prepare for move-in
day. Then begin packing after hiring a dependable mover.

Arrive at your closing

It’s time to sign the agreement and pen to paper finally. The purchase agreement is completed at the closing, and you are formally welcomed into your new house and become a first home buyer brisbane

Obtain updated pay stubs and other financial documentation just before the closing to demonstrate that your employment situation hasn’t altered and that you’ll be able to make your mortgage payments.