Browse Forums Home Finance 1 Jan 31, 2013 8:14 am Hello everybody, We have just started thinking about buying a house here and it is when doing some research on the net that I came across this forum and found this forum to be so helpful and informative. I am sure this question has been asked a million times here but since each individual case is different would appreciate some tips and information. We have managed a saving of around 40-45K and were thinking would this be enough to enter into the housing market? We are looking at buying a house and land package in the range of 350-375k. We are a single income family, we do not have any credit cards or any other loans thus we do not have any credit history and was wondering if this would be a problem in getting us a loan. What will be the best way to start the process? Do we book an appointment with a mortgage broker or go directly to the bank? Incase we approach the mortgage broker, but for some reason want to wait for a bit longer is that okay?Hope my questions are not too naive.We have absolutely no clue as to how to go about the entire process and just a bit scared to commit to something so big. Mpp Re: First home buyer 2Jan 31, 2013 2:56 pm Hi Mpp, Welcome to the forum. No issue about asking questions here, that's what it is here for, to help. With at least 10% in deposit from your savings, you should be able to enter the housing market (though there will be LMI involved at the 90%LVR mark). What state are you going to buy in? That determines if you might be up for some costs such as stamp duty, etc, though as it seems like you are eligible for FHOG which can offset that. Have you applied for things such as utilities, telephone before? As these things can come up on a credit report. Anyhow if you haven't and don't have any credit history, then it shouldn't be an issue. Just need to advise the broker/banker that you don't have a credit history as you haven't made any enquiries yet so they know about it. As for how to proceed, obviously an individual choice but I would say see a mortgage broker (though I am a bit biased being one myself). They can go through your scenario and give you advice on the best way to proceed. Stops you visiting lender after lender yourself. Though you need to make sure you find yourself a decent broker, as with any profession, they range from bad to good. Also if you approach a broker and want to wait longer, then they should be okay with it. If not, then they aren't worth dealing with. If you need any more information, just ask. Cheers Tom Re: First home buyer 3Jan 31, 2013 6:22 pm We are planning to buy a house in Vic -in and around Geelong as husbands workplace is in Geelong. Yes we had applied for utilities like mobile, internet, gas & electricity so guess that should be okay. Another quick question if we decide to buy land but if the title is not clear do we still have to pay the total price of the land. Just trying to figure out how will our loan repayments be in that case. Re: First home buyer 4Jan 31, 2013 6:31 pm I would definitely approach a broker. It's their job to give you advice and their services are free to you - make the most of it! As for land - if you mean it hasn't titled yet, you only pay your deposit and then nothing else until it titles. Building the Ascot 35 with Carlisle Homes in Pasadena Estate, Clyde VIC My build thread: viewtopic.php?f=31&t=59776 Re: First home buyer 5Feb 01, 2013 1:20 am As andystar mentioned, if the land titles haven't been registered, then it's only the deposit that is outlaid until time when they are registered. In fact lenders won't lend money out if it hasn't titled yet. Once you receive word that the land titles are registered, then you normally have around two weeks for settlement to take place and to come up with the rest of the funds. As you will be looking at building in Vic, you will pay stamp duty on the land value only, and eligible for the $7,000 FHOG once you start building. Cheers Tom Re: First home buyer 6Feb 01, 2013 9:38 am Oh that's a relieve to know that i only need to pay deposit and once the land is titled can pay the rest of the amount.So does that mean if the land is titled then i can start construction of the house immediately. Once again thanks all for the input. Re: First home buyer 7Feb 01, 2013 4:50 pm Yep, once land has titled and settled, you can begin the building process. Cheers Tom Re: First home buyer 8Feb 05, 2013 2:16 pm mpp Hello everybody, We have just started thinking about buying a house here and it is when doing some research on the net that I came across this forum and found this forum to be so helpful and informative. I am sure this question has been asked a million times here but since each individual case is different would appreciate some tips and information. We have managed a saving of around 40-45K and were thinking would this be enough to enter into the housing market? We are looking at buying a house and land package in the range of 350-375k. We are a single income family, we do not have any credit cards or any other loans thus we do not have any credit history and was wondering if this would be a problem in getting us a loan. What will be the best way to start the process? Do we book an appointment with a mortgage broker or go directly to the bank? Incase we approach the mortgage broker, but for some reason want to wait for a bit longer is that okay?Hope my questions are not too naive.We have absolutely no clue as to how to go about the entire process and just a bit scared to commit to something so big. Mpp Hi MPP and welcome to the forum, hope you enjoy your stay. With no credit cards your loan is consider perfect! in Australia we prefer files with low or no consumers credit activities ( presuming you do have a credit file or some sort...ie you have applied for mobile contract/ utilities/ work etc..) Just note with your deposit, you will most likely be applying for an 90% LVR loan ( meaning you will be using a 10% deposit or less) so Lenders mortgage insurance (LMI)will be payable The choice of choosing between a broker or the bank directly is a personal choice. I am bais, so i won't say too much...but i'll just add that brokers don't charge a fee and they can compare multiple banks; not JUST on rates but on your LMI cost and total set up cost. Most importantly depending on your brokers experiences he/she will be able to strcuutre your loan in the most efficient way to benefit you! rather than the bank.. Any questions; just ask away! Regards Michael Michael Chan | Australia wide Mortgage Broker Michael@ShapeHomeLoans.com.au | 1300 74 5626 | Fax: 02 8212 8909 http://www.ShapeHomeLoans.com.au Not much in this responce. My suggestion is, what are you looking to build and why. This will all be impacted by the local councils planning scheme. Familiarise yourself… 6 5816 A quick update, we didn't have site start before Easter. Summit can't seem to give me a day when they are scheduled to begin, so I'm left with a vague "within 10-20… 4 26686 We already paid for somfy motors for the blinds. 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