First Home Buyers
Although applying for your first home loan mat be the biggest financial decision you’ll make, it doesn’t need to be an overwhelming one. With Switch My Mortgage, we will build an understanding of your financial position and position yourself as an attractive first home loan customer and be approved in no time.
Before you Apply
Before applying for your first home loan, Switch my Mortgage will determine your creditworthiness by running free personal credit reports for all applicants. Your credit history will be a key factor that a lender will consider when deciding to process your loan application.
Switch my Mortgage will carry out a thorough assessment of your financial position. This is to ascertain the amount you can borrow and the ease with which you’ll be able to manage your repayments.
Your Current Financial Position
Switch My Mortgage will carry out a thorough assessment of your financial position. This is to ascertain the amount you can borrow and the ease with which you’ll be able to manage your repayments. Switch my Mortgage will explain in detail the ancillary costs of buying a home and getting a loan, such as legal fees, lender establishment fees, stamp duty and First Home Owners Grant (FHOG).
Saving a Deposit
Saving a deposit is a good idea for two reasons:
- A 20 per cent deposit could mean you do not have to pay for Lenders Mortgage Insurance (LMI). LMI is a premium amount that a borrower must pay to the lender when the loan-to-valuation ratio exceeds 80 per cent. Some lenders may make the loan available without having to get this insurance.
- A 20 per cent deposit immediately tells a lender that you are financially disciplined and responsible – attributes that will encourage lenders to look favourably upon your first home loan application.
Don’t have a 20% deposit?
If you do not have a 20 per cent deposit, don’t despair. Switch my Mortgage will provide you with some options to help you find the right loan product.
Finding the right first home loan often entails so much more than just interest rate. Switch my Mortgage will research a range of products and investigate their fine print, including any set-up and break fees, loan structures, flexibility options such as redraw and offsetting, repayment options and guarantees.
Switch my Mortgage will have expert product knowledge that they can discuss with you to determine what loan would best suit your lifestyle and needs, both now and in the future (for example, when starting a family).
Documents needed for Application
To facilitate a fast assessment of your loan application, it’s helpful to gather recent copies of your pay slips and evidence of any other income.
Also, gather copies of your bank account statements and credit card statements. If you’ve been employed for only a short time, try strengthening your application by obtaining letters of reference from your current and previous employers.
If you are self-employed, a way to show your monthly income, outgoings and cashflow is by having business invoices and receipts on hand in case the lender requires such evidence of your earnings.
Get started today
Remember that a good mortgage broker can help position you as an attractive borrower to lenders, while finding the best first home loan to suit your needs.
Switch My Mortgage offer a range of refinancing services to residents in Doreen, Eltham, Whittlesea, Mernda, South Morang, Greensborough, Donnybrook and more.
Contact a Mortgage Broker at Switch My Mortgage to discuss your situation today.