How do I get a home loan?

Buying your first home is both exciting and scary. It feels like there is so much to know and do, it can be overwhelming. Here is your easy guide to getting a home loan.

1. Work out your budget

Sit down and work out all your income and expenses. How much would you be comfortable paying each week? Take into account changes in your life for example, if you want to have a baby in the next few years. You want to be able to pay for the home loan without it causing financial stress.

2. How much can you borrow?

Find out how much you can borrow. You can use our calculator to get an idea of how much you might be able to borrow. This will help you get an idea of whether you can afford to buy in the areas you want or if you need to think of other options.

3. Find out your home loan options

Don’t just go with whoever you bank with. The chances of them having the right home loan for you are slim. Interest rates, features and benefits of home loans vary greatly from lender to lender. A good idea is to speak with a broker. They will be able to help you work out how much you can borrow, find the right home loan for your circumstances plus help you with all the paperwork including the first home owners grant if you’re eligible.

4. Get pre-approved

Before you start looking at properties, secure your finance. You don’t want to be in a position where you find your dream home, then the seller sells to someone else because they have their home loan pre-approved but you haven’t. Get all your paperwork together, speak with your broker and get pre-approval.

5. Look for a home

Now your finances are in order, start looking for your home. Write a list of exactly what you want in a home along with some things that would be nice to have included. Check online, talk to real estate agents and look under the price range you are pre-approved for.

6. Get inspections, make an offer and finalise the sale

Once you have found the property you want you can make an offer. Make sure you get proper building and pest inspections to ensure the property is ok, then finalise the sale. You will need a conveyancer for this part and if dealing with a broker, they’ll help you with the home loan.

7. Settlement

You’re all done! Settlement takes place when everything is completed and you have your home.

Getting a home loan doesn’t need to be a difficult process. Make it even simpler by talking to one of our brokers today to help you get in your home sooner.

• SHARE