First Loan Tips - Buying Your Own Home

By Author: Samantha Dale
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When buying your first home, there are a number of first loan tips that will help to ensure you secure a good deal and the finance you need to buy your own property. Getting a foot on the property ladder is a step toward a secure financial future, however you may be unsure about the process involved. Having a good credit rating and a history of good savings can go a long way, but using a mortgage broker is often helpful to get a deal that really works for you.

Borrowing options
In order to get the finance you need for your first home loan, there are two common steps you can choose between. Firstly, you could consider applying directly to the bank. This is not a bad option, but it can sometimes be turned down if you are self-employed, have had a bad credit history or you have a small deposit saved for the down payment on the home. The second option is to use a mortgage broker. This is a specialist in home finance who can help you to secure your loan by acting as a kind of 'middle man' with the bank. A broker can help you to get together all the necessary documentation to apply for a loan, they can advise on what ...
... price range is most realistic for you in terms of both borrowing and repayment, plus they can use their relationship with the bank to help get you the best rates and find the most appropriate loan for your individual situation.

Preparing to apply for a loan

First loan tips include the following steps:

Ensure you have a good credit rating - The very first thing that any lender will consider is whether you have a history of repaying credit cards, personal loans, bills and so on promptly. Ensuring this is in order will boost your chances of success with your loan application.

Understand the deposit guidelines for home loans - Banks will require a minimum deposit these days, which will vary depending upon the lenders loan criteria. A minimum of 10% is often advisable, as it will help you to reduce associated costs such as mortgage insurance.

Consolidate any other debt - Depending upon the lender, one of the first loan tips to follow could be to reduce or consolidate any existing debt. This may include using part of the mortgage to pay out a credit card or existing personal loan.

Demonstrate a savings history - Having a verifiable savings history shows that you are able to set aside money consistently over a period of time. This means that the bank sees that you are able to live within your means and set aside the funds that would be required in order to repay a loan.

Seeking advice from a broker is a good way to help ensure that you are successful in your loan application and that you have all the documentation you require in order. The broker can provide you with further first loan tips to help you secure the finance you need to take that important step into your very own home.

Buying your first home is an exciting experience. But it can also be stressful to arrange home loans and that sort of thing. Even more if you need to get a bad credit home loan which can be more difficult to be approved for. http://www.mrwfinance.com.au/