Buying your first home is very exciting, especially if you’ve been dreaming of owning your own home for some time. But it can also be a very nervous time, as you navigate your way through unknown territory.
We will help to ensure that you understand what’s required through every step of the property purchasing process and even give you reliable referrals for other experts and professionals that you may need to consult along the way.
Once we have helped you work out the answers to these questions, we can help you to obtain pre-approval of your loan so that you can limit your property search to homes within your budget and save yourself a great deal of time and effort.
So where do you start? Before you begin looking for the ideal home to purchase, you need to discover the answer to some important financial questions. Sorted Mortgages will help you to find out:
- How much can I afford to spend on a property? What is my budget?
- How much deposit will I need?
- Am I eligible for the First Home Buyer’s Grant or other government incentives and concessions?
- How much will my loan repayments be?
- What kind of mortgage product will be right for me?
- What are the other costs involved?
Getting the financials right
How much you can afford to spend on a property depends on your income, your regular expenditure and the amount of deposit you have saved. The first step is to determine your income and provide documentation that you can show to a lender.
What documentation of your income will you need?
- Your last two tax returns that detail your income from your job and any investments A letter from your employer or a copy of your employment contract.
- Payslips that confirm your year to date income for at least three months
The next step is to make a budget of your regular expenditure so you can determine how much of your income you can afford to spend on mortgage repayments. (Ask us for a copy of our weekly budget planner to make it easy). As a general rule of thumb, you should be paying less than one third of your income on mortgage repayments