Once you decide to buy your first home or investment property, taking the next step can seem tricky. Where do you start?
In this article, we’ll take you through a step-by-step guide on each stage of purchasing your home or land lot and making living in the Westwood community a reality.
Step 1 – Work out what you can afford to borrow.
Also known as your “borrowing capacity”, this is the loan amount that you can borrow and afford to meet monthly repayments for the next 20-30 years.
Banks will assess your ability to pay back a loan by looking at your current income, regular expenses, savings, debt, dependents, credit history and current assets. Online calculators will give you a ballpark figure, but for something more exact you can reach out to a mortgage broker for assistance, such as Mortgage Domayne. They’ll consider the above factors and let you know how much you can expect to borrow.
Step 2 – Organise your finances before pre-approval application.
For the best chance of a successful loan pre-approval, you will need to get your finances in order – this could mean taking more time to save for a deposit or pay off debt.
If you don’t know whether you wish to purchase a townhome, freestanding house or apartment at this stage, you will have an approximate idea of your budget and can start to research.
Step 3 – Apply for pre-approval.
Pre-approval is when a lender confirms how much they will loan you, based on your application and current circumstances. Once you have this, you will know the exact budget you have to work with.
Your mortgage broker can help you with your application and ensuring you have the relevant documents (proof of income, credit card and loan statements, records of savings, identification and proof of residency, for example).
Your broker can also assist you with information on any grants you may be eligible for. These include:
Victoria First Home Owner Grant
This is a $10,000 grant for those building or buying their first new home.
Stamp duty removed or reduced
There are stamp duty exemptions or concessions for first home buyers on properties priced $750,000 or less.
First Home Guarantee
For first home buyers purchasing a brand new home with less than a 20% deposit, the remaining portion of that deposit will be ‘guaranteed’, so you don’t need to pay Lender’s Mortgage Insurance (LMI). Essentially, you can have only a 5% deposit without needing to pay LMI.
Step 4 – Find your property and make an offer.
Once you have secured pre-approval, it’s time to find a land lot or townhome in Westwood that fits within your budget and make an offer. Don’t forget to consider hidden costs such as building/site costs, stamp duty and conveyancer costs.
If you are searching for an investment property, your broker can assist you with rental appraisals to help you select the investment that’s right for you, and our friendly Westwood sales consultants can also provide some approximate rental ranges.
Step 5 – Finalise finances.
Once your offer is accepted, your broker will finalise your home loan approval and hand over your deposit to the developer via the sales consultants.
Step 6 – Settlement.
As construction at Westwood continues, our team will provide regular updates via email and through our website. Our team and your conveyancer will be in touch as your Title date approaches, so you can talk to your bank or broker and prepare for settlement.
Then it’s time for the construction of your home to begin!
If you have any more questions about the homebuying process or are ready to find your dream home at Westwood, contact our friendly sales team.
