Benita from Coomera has asked a question…
[blockquote]”I’m looking to buy my first home but I was wondering if I look for the house first or get pre-approved for a loan. I have never done this before, can I get a pre-approved loan, who do I talk to first?”[/blockquote]
Congratulations Benita, this is a big step in your life. As they say, don’t put the cart before the horse, get pre approval so you won’t be disappointed. There would be nothing worse that setting your heart on a home and finding you can’t afford it. Ask you local bank manager or get recommendations from friends who have purchased for an appointment to discuss your financial position. Be completely honest, don’t hide anything because it will come back to haunt you.
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Clear the decks, all your debts need to be paid off and a good savings plan be in place. Try and save as much as you can. First home buyers can access grants for new builds which can be of great help but traditionally you would be looking at pre-existing.
The main advantage of being pre-approved is you are in a very strong bargaining position, you essentially have the money in the bank, you can attend and register to bid at auctions which can be very exciting. It also gives you your best offer value as the pre-approval is your ceiling.
Don’t be tempted to max out credit cards or sell your first born as it will only make life tough for you in the short term. Look at properties within about 10% of your price range, most properties sell within 5% to 12% of asking price.