Finance is one of the biggest hurdles first home buyers face. This can be due to a number of factors related to the person’s personal situation right through to the processing of the application. This is a critical step towards home ownership and banks require a lot of information to assess an application.
A few areas first home buyers can prepare themselves to be in the best financial position for assessment include:
- Have a stable work history, with longevity and consistency in positions.
- Savings in the bank, even if you only have a small amount of savings it’s a start!
- Clean financial / credit rating, the less debt you have the better.
- Income that is sustainable to pay a mortgage and incoming expenses.
Building a Package
Each suburb has ranked house prices within three categories (Upper Quartile, Median and Lower Quartile). Your house and land package is reviewed by Bank Valuers and either approved or declined based on the house package price (house + land = house package price).
First home buyers should be prepared to keep their house package within the median quartile bracket for the best possible chance of obtaining finance approval without delay. REIWA has a tool that can be used to source this information: https://reiwa.com.au/the-wa-market/#suburbs-regions
When selecting your block it is important to consider the following as this can cost you significantly in time and money:
- Will the block require planning approval? Blocks under 260sqm require planning review and approval which can take 3 months or more.
- Is the block titled? Blocks that aren’t titled by the developer will delay any work that can proceed until the titles are received.
- Is any site clearing work required? A site that hasn’t been cleared will need this to be done prior to construction commencing which could result in an additional expense.
- Does the block require retaining? Retaining if not provided by the developer or the seller will require an additional expenses and need to be arrange prior to construction commencing.
Be mindful that you select a package that is affordable; your Consultant, Builder and Finance Specialist should guide you along the right path to ensure you are not locked into something you cannot afford or are not happy with. Living in a home you can’t afford will place you under unnecessary stress.
Key Milestones to Start the Journey
- Initial consultation – a Finance Health Assessment (FHA) will be conducted to establish your borrowing capacity or how much the banks will lend you.
- Consultant will help structure a house and land package in an area that you want to be.
- Documentation for House, Land and Finance will be prepared and then lodged to the recommended lender for what is known as Formal Approval.
- Once your loan application is formally approved by the bank the builder can commence works for the construction of your new home.
At WOW Homes, we are problem solvers, we help our clients achieve their dream of home ownership. We can assist with these areas of focus in getting our clients into a position where they’re able to build their first dream home, without over-stretching themselves.
There’s nothing more satisfying than turning the lock on their brand new home.
Could you be eligible for up to $30,000!* off your house?
As a first home buyer you could be entitled to the $10,000 First Home Owners Grant. Make sure you don’t miss out. We’ve helped thousands of people claim their $10,000 grant.
The first home owners grant (FHOG) is a one-off payment from the government to incentivise first home buyers to buy or build residential property.
The first home owners grant is $10,000 from the government, however at WOW Homes we are known to Triple the Grant*. This means we boost the grant with an extra $20,000, that’s a whopping $30,000 – this is massive especially for first home buyers.
This is not a misprint! WOW Homes is the home of Triple The Grant™. If you’re eligible, you’ll get $30,000 towards your new home!
- $10,000 First Home Owner Grant
- $20,000 towards your home!
Did you know? It can take 30 – 40 days to get your home loan approved. So don’t wait, you have everything to gain and nothing to lose.
WOW Homes helps cut through all the red tape. We go to the bank on your behalf, we’re a one-stop shop. We do it all for you! We take care of the entire process to make everything as easy as possible for you so you’re dealing with less people. We’ll do it right the first time.
Our in-house lending crew have access to and work with up to 38 different Banks and Keystart and can help secure the best home loan to suit your circumstances and requirements, if you are short on a deposit.
Find out if you qualify!
Still got questions? We’ll let you know if you qualify. It only takes a couple of minutes so get in touch with us today!