Mortgage Broker Reveals The Biggest Mistakes First Home Buyers Make

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A mortgage broker has identified the most common mistakes early home buyers make when buying a home.

Robert Roper, Director of Trusted Finance at Perthhomebuyers often blindly search for properties without consulting a lender or knowing their maximum creditworthiness, the Daily Mail Australia told the Daily Mail Australia.

Roper said it is important to determine how much you can afford based on your lifestyle and monthly expenses, and if that will change in the future if you have children.

“It is very important for early home buyers to know how much they can afford to borrow and to consider their future goals, which can cause financial stress,” he said.

Over the past few months, Mr. Roper has gained over 22,000 subscribers. TEC So sharing their reliable information in short videos.

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Robert Roper, director of Trusted Finance in Perth (pictured), told the Daily Mail Australia that home buyers often look at properties blindly without consulting a mortgage lender or knowing their maximum creditworthiness.

Robert Roper, director of Trusted Finance in Perth (pictured), told the Daily Mail Australia that home buyers often look at properties blindly without consulting a mortgage lender or knowing their maximum creditworthiness.

Mistake 1. Lack of data on the suburbs.

Roper said early home buyers tend to focus on specific homes without examining suburban data.

Analyzing the history, current data, and capabilities of a suburb of interest can help you understand what price range homes are typically sold for.

Mr. Roper suggested three to six months of researching the suburb using real estate websites to determine how long the property has been on the market and find out at what price the home was sold.

“If you can’t find out how many properties are being sold online, call the real estate agent directly to ask – they are usually more than happy to disclose information,” he said.

Mistake 2: not knowing how much you can afford.

Before looking for property on the market, it is important to know how much you can afford per week versus how much the bank is willing to lend you.

“The fact that the bank is offering you a $ 800,000 mortgage does not mean that you have to borrow the maximum amount,” said Mr Roper.

More often than not, he added, early home buyers are often “persuaded” to reach their maximum creditworthiness or even more due to market competition.

For example, if you know that the house has already had several offers, you are more likely to increase your own to accommodate the largest amount.

Before looking for real estate on the market, it is important to know how much you can afford per week versus how much the bank is willing to lend you.

Before looking for real estate on the market, it is important to know how much you can afford per week versus how much the bank is willing to lend you.

How Can Financial Stress Affect Your Mental Health and Wellbeing?

While a bank or mortgage lender can help determine how much you can borrow based on your annual expenses, it is important to consider how a mortgage can affect your health and wellbeing.

Mr. Roper said that before buying a property with maximum leverage, think about your future and goals.

Roper said that whether you are single or with a partner, consider whether you want children and how soon you want to start a family.

“Having a baby and starting a family is financially changing because one person is often the primary caregiver and will have to stop working for a while,” he said.

“It often puts a financial strain on the couple and can affect their mental health.”

Mistake 3. Lack of communication with a mortgage broker or lender.

Rather than go straight to the bank and ask how much you can borrow to buy real estate, Mr. Roper strongly recommended talking to a mortgage broker who will consider a large number of options.

Mortgage brokers compare several banks and interest rates to determine which one is best for the client.

“Different lenders have different policies, so the mortgage broker will determine which bank is best for you and your goals,” he said.

Mistake 4: not thinking about the future

Roper said that whether you are single or in a relationship, young first home buyers need to consider their future, whether they want children and how soon you would like to start a family.

“Having a baby and starting a family is financially changing because one person is often the primary caregiver and will have to stop working for a while,” he said.

“It often puts a financial strain on the couple and can affect their mental health.”

For this reason, it is optimal to buy a home at an asking price that is less than your maximum creditworthiness, if possible.

It’s also worth considering what might happen if real estate in your suburb falls – this will affect the value of your home if you sell it.

Rather than go straight to the bank and ask how much you can borrow to buy real estate, Mr. Roper strongly recommended talking to a mortgage broker who will consider a large number of options.

Rather than go straight to the bank and ask how much you can borrow to buy real estate, Mr. Roper strongly recommended talking to a mortgage broker, who will consider a wide variety of options.

Mistake 5: no additional cost involved.

Apart from the collateral, buyers also have to pay additional costs when buying a property – although this is often overlooked.

These costs include stamp duty, bank charges, mortgage insurance, and lenders.

Lender Mortgage Insurance (LMI) is the only fee that can be avoided if the prepayment is 20% or more.

According to ANZ, lenders’ mortgage insurance protects the lender in the event a homeowner defaults on his home loan and there is a “shortage” of money.

Mistake 6. Lack of building and pest inspection in your sales contract.

Another fatal mistake that can lead to additional costs is the lack of verification that the property purchase agreement includes a building and pest verification.

“Most real estate agents do the right thing and always make sure that this factor is included in the contract, but it’s always worth checking,” said Mr Roper.

If no property inspection is carried out in the building and there are defects in the building, the buyer must pay for the damage if he has already signed the contract.

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