Getting foot on the property ladder is one of the most important steps of your life. As such, it can be quite a stressful process, fraught with unexpected challenges. Therefore, it pays to have a basic understanding of the steps involved when buying your first home.
How much can you borrow?
Knowing how much money you have available to you is crucial when deciding which property you want to buy. It’s no use inspecting waterfront mansions located near a CBD when you only have $200,ooo available. This means getting a pre-approval from a lender (or preferably a couple) to understand your maximum borrowing amount.
Armed with that knowledge, you can do two things:
1) Filter your property search so that you’re only exploring affordable options
2) Working with a finance expert to improve your borrowing capacity.
If you select option two, this may mean cutting up your credit cards temporarily, or tightening your budget, to ensure you have a larger deposit and better credit rating.
This is where a SmartFinance broker can help.
We have a team of mortgage specialists who have access to over 30 lenders, meaning they can select the ideal loan product to help maximise your borrowing amount, guide you through the entire process, or assist you with your finances to ensure you reach your borrowing target.
So if you’re serious about purchasing your first home, then contact us today (either by 1300 995 995 or via the contact form on the right) and a member of the team will be in touch soon!