Your budget will have a big impact when it comes time to purchasing a property. The way you budget will have an affect on the amount you can save for a deposit, which will impact the amount you can borrow and how much interest you will pay. Ensure your budget is helping you to make regular savings deposits. A solid track record of employment and a history of regular savings in your bank account can make it easier for you to get a home loan.
There are a number of costs associated with purchasing a property. It's important to understand these costs and how they might impact your repayments and your overall budget.
|Stamp Duty (Tax) - Calculate
|Mortgage registration fee
|Home loan application fee
|Learn more about these costs
Talking to a specialist lender is a great way to find out what kind of position you are in prior to making an offer on a property. Specialist lenders can help you even before you start researching properties, which is a great way to get your financial history and budget in order.
At Heritage, our specialist lenders love helping first home buyers and can take you through the process of purchasing a property step-by-step, from saving and budgeting for a deposit, to working out which kind of loan will suit your situation.
Mortgage Brokers are professionals who can help you find the right home loan amongst a range of different lenders based on your situation. Brokers generally charge the borrower nothing for the service, as they are paid a commission by the lender when the mortgage is settled.
The home loan application process can be a confusing and stressful time, particularly if you are waiting on approval to make a home purchase unconditional.To help make your journey easier, we've put together an handy infographic that explains the Home Loan Application Process.
We also have a Home Loan Application Checklist that lists the documentation you will need to put an application together at Heritage Bank. As this is a guide only, it's important to talk to your lending specialist in case you may need to provide extra documentation.
It can be disheartening to find out a loan for your first home is not approved. To keep the contract on the property you could consider having a family member guarantor for you. This means your family member can use the equity in their own home to provide additional security for part of your loan amount. Find out more about how family guarantee works at Heritage. If this is not possible, and you have no other funds available, unfortunately you may have to cancel the contract on the property.
While this is an unfortunate circumstance, we can work with you to put a road map in place to help you secure a future property within your approval limits. This can include helping you set up the right accounts to save more money and put a budget in place. To do this, talk to one of our lending specialists.