That first mortgage is always the not-so-fun part of the homebuilding journey. No matter how much you have saved, buying a property is always a large investment. That’s why it’s important to understand every option available to you when it comes to working out your finances. At Hoot Homes, we want to guide you through the journey in achieving your ideal home. To help you out, we’ve put together a guide for buyers looking at financing their first home.
Looking to Build Your First Home? What’s the Process?
Whether you’re looking to buy or looking to build, the process of trying to get a traditional bank loan can be long and intense.
To keep this process simpler and less stressful for our customers, we’ve partnered with Mortgage Link to help you navigate the complexities of the finance market.
From pre-approval to the final payment and beyond, both Hoot and Mortgage Link are here to assist you at every stage of the financial process.
- Helping you to work out your borrowing capacity
- How much you’re looking to spend
- Bringing together a shortlist of lenders
- Working with you throughout the application process until final approval
Once you’ve received final approval, you can then start to focus on the fun parts, like working out what you can get for your money.
What Documents and Information Do I Need?
Naturally, when you go to a bank in search of loans, there’s a lot of documents that they are going to be looking for. Things like;
- Bank Statements, and
Are you self-employed? Practically EVERY area of your life and what your daily expenses are will go into determining your borrowing capacity. That gym membership, those multiple trips to your fave cafe each day for a $5 latte. Everything counts.
More recently, this has grown to include general living statements, which includes three months of bank statements. This will determine your average spending habits compared to how much you earn.
Because of this, Mortgage Link has been speaking with Hoot Homes customers and helping them to cut down their spending habits for the months preceding their loan. This allows customers to maximise their desirability to banks and increase their chances of getting a good loan.
Other Documentation Will Include:
- Two current forms of ID (Driver’s license, Passport, Proof of Age card, etc.)
- Two original documents, if you don’t have the above ID (Birth certificate, Medicare card, Citizenship certificate, etc.)
- Income Information (Most recent three months of payslips, Evidence of salary over past three months, etc.)
Other documentation will be required depending on your income status, such as for those who are self-employed or are collecting income from rental properties.
Are All Banks the Same?
As with most financial areas, there are going to be different banks that specialise in different types of loans. This can also change with time, as different lenders will have different specials and product/credit niches.
It is important to ask a lot of questions to make sure you feel comfortable in going with the right lender or institution.
Financing your first home can be a little overwhelming, especially if you don’t feel like you have the information you need to turn your needs into a reality. Luckily, at Hoot Homes, we’re here to provide you with everything you need to buy or build your dream home without the hassle. To learn more, explore our affordably luxurious range of home designs and house & land package options, or contact us today on 1300 303 100.