06 Nov Essential Steps That Most First Home Buyers Forget to Take
As a first home buyer, you will need to take various important steps while or before you are making your investment in the property. Most individuals in Melbourne forget to take them, which creates problems for them at a later stage. So, we will discuss them here to help you avoid any type of problematic situation. So, without any more delay, let us take a look at the steps that you need to take before you apply for the loan and even after you have it approved.
- Understand the Difference Between Loan Pre-Approval and Formal Loan Approval
If you are seeking pre-approval for first home buyers loans in Melbourne, keep in mind that it does not imply that the lender has agreed to the loan. Pre-approval is only a limit provided by the lender where he or she will mention the upper and lower limit. This will help you refine your search for properties. After you apply for the final loan amount, the lenders will assess your background. If it deems fit, they will approve it.
Many first-home buyers fail to understand this difference which leads them to disappointment, especially when they see that their loan application is rejected.
- Do Not Invest More than You Can Afford
The next important step that most first-home buyers fail to take is to apply for loans that are more than what they can afford. They do not consider the rent and what they are saving for the deposit. So, take this into account, and after you’ve got that number, you should stick to it. Also, you should opt for the pre-approval of the loan. That’s because if you exceed the budget, you will risk your property and also the others that you want to acquire.
- Never Underestimate the Property Purchase Cost
Before you apply for the home buyers loans in Melbourne, you will need to understand that investing in a property involves additional costs which is beyond your expectations! On top of the sale price, you will need to bear transfer duty, which is a percentage of the value of your property. Apart from this, mortgages will also carry application fees. Additionally, you may need to pay mortgage insurance depending on your deposit. So, before applying for the loan, discuss these points in detail with your lender.
- Do Not Think Emotionally
Finally, a new home can fascinate everyone. However, you should never let your emotions get the best of you. Make sure that you apply for what you can afford, what we mentioned in the last point. If possible, make a checklist of the type of property that you wish to invest in. The more you think practically, the better your decision will be related to your first home buyer loan.
- Consider Various Factors of the Property
Before you buy the first home in Melbourne, you should consider factors such as restrictions on what to build, land where the property should be, council approval for renovations, neighbourhood, etc. If all these points satisfy you, rest assured that investing in the property will be a good idea.
If you follow all of these steps, rest assured that you will never have to face complications.
Apply for a First Home Buyer Loan
You can apply for a first home buyer loan directly from the website of MBG Services. Click the ‘Apply Now’ button at the top and follow the directions, or call us if you have more queries.