Author Box
Articles Categories
All Categories
Articles Resources

Funding Your First Home

April 13, 2012 | Comments: 0 | Views: 133

So you've decided it's time to buy your first home. That's great news but now what? Navigating the home mortgage process can be complex and sometimes confusing but it is well worth it...especially for a first-time homebuyer. Knowing what to expect and what options are available can help pave the way for a much smoother journey.

First Steps to Take

Before applying for a loan it's important to get your financial records in order. Whether you make a paper list or an online spreadsheet, get your information in writing so you can know what you're really working with. It's essential to know how much money you're bringing in each month and how much you're paying out. Track everything from car payments to weekend entertainment costs to savings to get a true picture of your spending and saving habits so you can effectively determine how much you'll comfortably be able to afford for a mortgage payment.

Be sure to consult with multiple lenders to compare rates and products before deciding on a loan. Ask about the benefits of fixed and variable rates, loan terms, points, closing costs and any other fees associated with their products.


Nearly all lenders will require you to make a deposit on your new home. While some lenders will accept a deposit of as little as 3%, the traditional home deposit is 20% of the home's purchase price. This might seem like a daunting amount but it's important to keep in mind that the more money you can put down on a home means the less money you'll need to finance. And regardless of your interest rate, the less money you need to pay interest on, the more money you'll save in the long run.

In addition, if your deposit is less than 20% you'll generally need to pay Lender's Mortgage Insurance premiums. This is a safeguard for the lender to protect their investment in the event the homeowner defaults on the loan. Some lenders roll this fee into the mortgage and others require an upfront payment. This is something to consider when choosing a lender.

First Time Home Buyers Grant

The First Time Home Buyers Grant was established in 2000 to help borrowers purchase their first house. The federal government funds the scheme but it is administered through each state or territory individually. The scheme provides a one-time $7,000 payment to assist with the purchase of an existing home or with new home construction.

Borrowers must meet specific criteria to qualify for this program. In general, all borrowers must be purchasing or building their first home in Australia and be citizens of the country. Other criteria, including age requirements, occupancy requirements and property price caps vary by state. Income level and property location (within Australia) have no impact on borrowers' eligibility.

Tomorrow Finance offers home loan comparison software to help people compare hundreds of home loans from Australia's lenders. Find out how much you can save simply by choosing a loan with the best home loan rates.

Source: EzineArticles
Was this Helpful ?

Rate this Article

Article Tags:

First Time Home


Home Buyers


Home Buyers Grant

The 3 Month Payday Loans is most suitable options for the people who do not possess assets. There are a variety of loan options for the people who are willing to pledge assets against the cash

By: Cameron white l Finance > Personal Finance l July 09, 2013 lViews: 560

For many people, bankruptcy can make their world fall apart. The apparent loss of reputation coupled with the inability to take financial decisions can deter anyone from thinking clearly. But all is

By: noragwilt l Finance > Bankruptcy Lawyers l November 18, 2012 lViews: 304

If you are availing payday loans with monthly payments, it is easy for you to obtain quick money from online lending companies.By getting the best deals of loan, you can save money in terms of

By: Malen Cheks l Finance > Loans l November 16, 2012 lViews: 289

Loans online have become the popular source of income and people can make smart decision of taking it.Now, don’t go anywhere and sit in your home silently. Such deals would bring you money without

By: Marsh Jone l Finance > Loans l November 13, 2012 lViews: 288

Loans for the unemployed would let you feel comfortable with your unstable conditions due to jobless period.If you compare the rates of a few lenders, you would definitely get the suitable lender to

By: kelse roy l Finance > Loans l November 13, 2012 lViews: 467

By taking cash advance for bad credit, it is easy for you to improve your credit status. This loan is useful to relieve financial stress. This loan is totally free from credit verification and

By: Honard Nork l Finance > Loans l November 09, 2012 lViews: 301

Here is some of the common home loan terms that one comes across while applying for a home loan. What is an E.M.I?

By: Subhrajeet Talukdarl Finance > Home Equity Loansl May 31, 2012 lViews: 183

Are you confused about investment home loans and how to find the best option for you? This article gives you 7 hot tips on how to find the best option for your personal situation so you can save

By: Julian Thorntonl Finance > Home Equity Loansl May 31, 2012 lViews: 172

Purchasing a home for you and your family doesn't have to be difficult. There are easy ways to go about it. It is wise though, to arm yourself with knowledge before you proceed to do so.

By: Sabrina A Becnell Finance > Home Equity Loansl May 26, 2012 lViews: 164

A home equity loan allows a homeowner to use the equity they have built up over several years living in their home as collateral for a second mortgage. Homeowners can essentially inject liquidity

By: Rocky C Rhodesl Finance > Home Equity Loansl May 25, 2012 lViews: 187

Under the Islamic law called sharia, all Muslims are clearly prohibited from enjoying money from riba or surplus value without counterpart. In simple words, one is not allowed to pay or receive money

By: Ilham Syahl Finance > Home Equity Loansl May 24, 2012 lViews: 177

We explore some of the variations in the biggest home loan market of all, the United States of America, and how these can impact on the overseas investor. I'll explore, the variation in lender's

By: Stephen John Brownl Finance > Home Equity Loansl May 23, 2012 lViews: 188

Renting has always been a popular option for young people. They don't usually have a lot of money saved for a down payment and, besides, they're not always committed to a specific place since they

By: Tony J. Stephensl Finance > Loansl April 14, 2012 lViews: 192

After the global downturn forced all businesses to reconsider how they use their money, many banks responded by hoarding their funds instead of lending it to businesses and individuals. Since very

By: Tony J. Stephensl Finance > Loansl April 14, 2012 lViews: 170

A reverse mortgage is a loan that uses your home's equity as collateral. Instead of borrowing money from a bank to purchase a home, you borrow money against the value of the home you already own.

By: Tony J. Stephensl Real Estate > Mortgage Refinancel April 14, 2012 lViews: 125

If you are considering a move within New South Wales, there are financial benefits for building a new home over the purchase of an existing home. In certain rural areas of Australia, state and

By: Tony J. Stephensl Real Estate > Building a Homel April 14, 2012 lViews: 160

  Tired of renting an apartment or living at home with the parents? If you've been setting some money aside and are ready to become a homeowner, there are some steps that you will need to take

By: Tony J. Stephensl Real Estate > Buyingl April 13, 2012 lViews: 162

It used to be difficult finding a lender that would lend money to self-employed people. Many lenders are now more inclined to accept applications for home loans from people that are self-employed.

By: Tony J. Stephensl Finance > Loansl April 13, 2012 lViews: 183

Discuss this Article

comments powered by Disqus