ARE YOU READY TO BUY YOUR FIRST HOME?

Reception • Jun 30, 2022

When buying your first home, it can be helpful to think about who you need to engage with and when to help you purchase your most significant asset to date!


There will be a few different people whose assistance you may require, such as Brokers, Real Estate Agents, Conveyancers and more, and they will become an essential part of your experience to make the process as smooth as possible.


In this blog, we will run through the different parties involved, how it all works, and a great ‘ideal timeline’ of when to engage each person, so get ready to take some notes because this will be a good one!

Brokers

Not surprisingly, we will start with Brokers and Banks. As a first-time buyer, you will likely not have all the funds to cover your purchase and will need a loan. 


The benefits of having a broker working on your behalf mean you can rest assured your loan structure will cater to your needs and that you are paying the best interest rate possible for your situation.

Top Tip

“When approaching banks directly for home lending, keep in mind that they will only be able to offer you loans exclusively with their bank. It sounds like a simple concept, and however, this can be quite limiting where lenders apply a ‘cookie-cutter’ approach to lending with limited awareness of your personal circumstances.”

Examples of questions brokers will help you answer:


  • How much can I borrow?
  • What will the purchase cost me?
  • What are the associated fees and charges?
  • Do I have to pay stamp duty?
  • What is the First Home Owners Grant, and does it apply to me?
  • Do I have enough of a cash deposit?


These are questions you should have the answer to before you begin looking at homes.

Solicitors / Conveyancers

Once you’ve found the perfect home, transferring the property into your name requires legals and paperwork. Once you sign the Contract, the conveyancing process will need to begin, and if you have not already done so, you will need to engage a solicitor or conveyancer to act for you until settlement. 

Real Estate Agents

Real Estate Agents will be your first point of contact, especially as you start to attend open for inspections.


It is important to note that Real Estate Agents are retained and paid by the Vendor (seller) and must therefore primarily look after their clients’ interests first. For this reason, market knowledge, research, and entering into well-informed negotiations are crucial when making your first purchase.

Pest and Building Inspectors

We encourage all buyers to engage a pest and building inspector to inspect the property they intend to purchase and have this written into the contract. The principle of caveat emptor applies when you sign a contract of sale – this is Latin for the principle of “Buyer Beware”.


If a purchaser signs a contract for a house structurally unsound or riddled with termites, the law does not allow purchasers to claim they ‘did not know’. With a financial commitment of this size, getting pest and building reports to ensure there are no nasty surprises is imperative.

Financial Planners

Once you’ve taken the exciting step of purchasing your first home, you must obtain the proper insurance(s) to protect your most precious asset/s. This is not only limited to your new home but also includes the most precious asset – you! Life Insurance and Asset Insurance all form essential aspects of your financial future and can be addressed with the assistance of Financial Planning experts.


Now that you have this information, where do you begin, and who should you approach first?


Ideally, start with a Broker, and find the answers to the abovementioned questions. Then head to some open inspections and speak with your local real estate agent about what you are searching for.


From there, engage a conveyancer as well. When you put an offer in for a property, be sure to include a building and or pest inspection into your contract and then you can seek an inspection professional. 


Refer to the below diagram for more information and as a guide for an ideal timeline!


Remember, though, that a broker is where everyone should start their home-buying journey. Don’t walk into the process of home-buying with uncertainty!


To gain tips about buying properties for auction or private sale, check out our earlier blog  here , and if you have any questions for the team, give us a call at (03) 8657 8664.

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Navigating the World of Mortgages: What borrowing capability do you have?

01 Aug, 2023
Navigating the World of Mortgages: What borrowing capability do you have? Deciding to buy a house is an exciting milestone, and we're here to accompany you through the intricate world of mortgages. With the changes to interest rates that have happened over the last twelve months, it's essential that we are prepared and approach borrowing with a healthy attitude, as your choices now will have long-lasting implications, so let's ensure you're well-prepared for this homeowner journey. What should I consider when considering my borrowing limits? First, let's figure out how much you can borrow without sacrificing your peace of mind and daily joys. The key here is to measure your income against your expenses, including the potential mortgage repayments. A general rule of thumb: try to keep your mortgage repayments to no more than 35% of your gross monthly income. When it comes to borrowing generally, the higher your deposit and the higher your income, the more they should be willing to lend. The good news is we have more flexibility as mortgage brokers than the big banks, so we can look at your circumstances closer. Now, let's discuss some essential factors to consider when figuring out your borrowing limits. How much debt can you handle? Think about your lifestyle and what you're willing to give up versus what's non-negotiable. Be realistic about your dream home. Start with something affordable and gradually work your way up as your earnings grow and your equity increases. Think about the future. Are you planning to start a family, change jobs, or experience significant life changes? Factor those possibilities into your calculations. Keep an eye on interest rates and consider how further rises might affect your ability to make repayments. Reminder; A reminder that when purchasing a property, you will also need to factor in further expenses, such as, pay stamp duty, pest & building inspections, conveyancer fees, application fees, council rates, possible strata or body corporate costs, and utility bills to factor in. In Summary We'll help you evaluate your financial situation, research and compare over thirty lenders and loan options, and gather the necessary documentation to help you whether you are purchasing your first home or refinancing. What should I do next? Our dedicated team is committed to nurturing your financial well-being and helping you achieve a stronger and more secure future. Call our office on (03) 8657 8664 to organise a time to chat, and we also invite you to take advantage of our free resources by heading to our website. https://www.futurefinancegroup.com.au/

Refinancing: What Are Your Options As A Homeowner?

By Bree Jones • 19 Jun, 2023
At Future Finance Group, we understand that financial hardship has become a pressing concern for many homeowners across the country, including Melbourne. We want to help you explore the benefits of refinancing your mortgage. By assessing the right time to refinance and understanding the steps involved, we can guide you to potentially save money, access improved loan terms, and secure a more favourable financial future. What are the Benefits of Refinancing? During these challenging times, refinancing your mortgage can bring meaningful advantages. Firstly, it may allow you to take advantage of lower interest rates, reducing your monthly mortgage payments and offering much-needed relief. Additionally, refinancing allows switching from a variable-rate to a fixed-rate mortgage, ensuring stability and protection against future rate increases. By consolidating high-interest debts, you can streamline your finances and gain more control over your monthly obligations. Also, refinancing can unlock equity in your home, providing funds for essential expenses or other financial goals. Assessing the Right Time to Refinance Working out when to refinance can be challenging, mainly because we do not know what the future will bring. We are here to look at your personalised options and work with you to ensure your financial security. We can consider many factors, such as your credit score, home equity, and employment stability, to give you informed options. Steps Involved in Refinancing and Potential Cost Savings : We are here from the beginning to the end and strive to simplify the refinancing process for you. We'll help you evaluate your financial situation, research and compare over thirty lenders and loan options, and gather the necessary documentation. Our ultimate goal is to help you secure better terms, rates, and long-term cost savings to ease the pressure on you and your family. In Summary In these challenging times, exploring refinancing options can provide much-needed relief and open up financial opportunities for you as a homeowner. What should I do next? Our dedicated team is committed to nurturing your financial well-being and helping you achieve a stronger and more secure future. Call our office on (03) 8657 8664 to organise a time to chat, and we also invite you to take advantage of our free resources by heading to our website. https://www.futurefinancegroup.com.au/
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