Owning a home for the first time is a huge basket full of joy. The first thing that any working person thinks after being steadily employed is to start planning to buy a home - a home that every person dreams of. This all sounds amazing until someone starts to think finance. The financing needed for a new home needs to be backed up by a loan. That is where every first-time buyer falters. People are so confused about first-time buyer home loans that they keep postponing their dream of buying their dream home. But, if you do your research or ask the right person, you will know that there are several first-time buyer home loan policies that the lenders have to offer to assist you through your house buying process. The Australian Government has rolled out several subsidies for first time home buyers. Adding up all these advantages, the process of buying a home becomes less daunting. Knowing more about the home loan specifics, it becomes easier for you to plan your finances and thereby you get a clearer view of the road to your desired target. Basically, there are 3 types of first-time buyer home loans. They are classified based on how a person wants to get his dream house:
 |
| Home Loan |
#1. Home purchase loans: This is the most common type of first-time buyer home loan. When you simply want to buy a home of a market or from a broker, this is the loan that aids you. You have to look for a pre-constructed property which is on sale and approach the lenders with its details. The lenders will give you the interest rates that are applicable for first-time buyers which are comparatively low.
#2. Land purchase loans: This is the case when some individual wishes to buy a piece of land and then construct the home as desired. In such cases, you get to design your home and you would not need to do any remodeling to a previously built house. For this, the lenders generally offer 85-90% of the amount as loan. You have to put together the rest of the 15% all by yourself. The government benefits of first time home buyers are applicable here as well.
#3. Home construction loans: This is the type of loan needed when a person wants to build or remodel the complete house over a land he or she owns. The application of approval of this type of a first-time buyer home loan is a bit tricky as there are many factors that need to be looked into as the person applying for the loan may or may not need to include the cost of the previously bought land in the loan.
 |
| Loan Application |
The key to getting a loan approved for your first home includes several points of consideration. The first is your credit score. Having a low credit score can jeopardize your chances to get higher amounts of loan. So, make sure that you clear off as many debts as possible before applying for a home loan. If you are self-employed, you need to be self-employed and consistently earning for at least 2 years to get a suitable first-time buyer home loan along with all the benefits a first-time buyer is liable to get.
The most important tip you need while considering first-time buyer home loans is: Do your research and find a quality mortgage broker to help you out if your finances are not stable. Above all, first go through all the benefits the government has to offer when you apply for a first-time buyer home loan.
Post a Comment
Note: only a member of this blog may post a comment.