Buying a House question

hidepenny · Post by **hidepenny** » Thu Jul 06, 2006 3:03 pm

Hi all,

Thinking to buy a house and trying to settle down, just thinking anyone has any experience with any home loan or bank?

How do the loans work? do i have to get dressed nicely to get more loan approved infront of the bank manager?

what's buyers? and anyother fees that are involved that are not included in the house price when buying a house?

how much desposit? or should i go to one that requires no depsoit and get the loan re-financed later on when i have?

Thanks so much in advance

SenNey · Post by **SenNey** » Thu Jul 06, 2006 3:11 pm

A bit step, but in my eyes well worth it.

I would reccomend a mortgage broker, they do all the leg work for you. Yes they get a commission % based on how much you borrow.
They will take you loan to all banks they deal with, and see who is going to offer you the better deal.

They will come to your house and discuss it all over a cup of coffee.

Assest or deposit is a great start
Savings plan even better. A bank account where you have been putting away some $$ everyweek.

A rough idea on how much you would like to borrow.

Mortgage broker will be able to tell you on the spot roughly how much you can borrow, based on wages etc.

Try some online calculators and work out roughly how much you can borrow.
You enter your wages etc, and it will say $$ amount It's only a guide.

As for fees, sorry no help there.

GOOD LUCK!!

javaman · Post by **javaman** » Thu Jul 06, 2006 3:14 pm

For the loan part I went to mortgage broker. Free service and easier to choose. They will do most paperwork (I just filled in my name and signed). All done in a week or so (apparently banks are fighting to get your business)...

Paying the mortgage part is not fun though. I never been actually in debt until now, and somewhat missed being "debtless" ...

SenNey · Post by **SenNey** » Thu Jul 06, 2006 3:16 pm

Oh and remember if you have a credit card, store card etc

The total value is a debt.
You may have a $5000 limit but only owe $40 they still class that as a $5000 debt, because you can rack that up in minutes.

Go othe broker, the fee that charge is paid via the bank, but the bank includes that in your bank fees.
Yes you pay for it in the long run.

ant · Post by **ant** » Thu Jul 06, 2006 3:21 pm

Im now 21, and bought my first house at 19.

Bought the house first, then bought/upgraded the toys ie. car/bike.

My old boy is a mortgage broker, and ran me through the process.

Without him, I wouldn't have been able to do it.

I'm lucky that I have a well paying job, but it all depends on your income/outgonigs, savings/deposit and anything else like that.

Colette · Post by **Colette** » Thu Jul 06, 2006 3:30 pm

As others have said, go the mortgage broker, as there is much to consider that you may not even know about an best of all, the service is free

Stereo · Post by **Stereo** » Thu Jul 06, 2006 4:03 pm

Mortgage broker...

We spoke to an Aussie Johns representative.... VERY hepfull....

Johnnie5 · Post by **Johnnie5** » Thu Jul 06, 2006 4:19 pm

i went with the ANZ as a long time user of the ANZ and they would lend me $30K more than the others would despite having a big deposit , this is due to what your income is

I dealt with everything over the phone, didnt see anyone, everything was posted out

I have it great with them , i have an interest offset account , my credit card and the home loan

the loan is paid direct debit , the CC is on auto payment , all i do is go t work and earn the money and not worry about making payments , shifting money etc

any bills i get power, water, rates etc i try to stretch out as far as possible and pay on the CC which then gives you more time to pay for it and means that your money is in the bank and not paying interest on that cash , little bit here little bit there saved all helps

Smitty · Post by **Smitty** » Thu Jul 06, 2006 4:20 pm

hidepenny wrote:Hi all,

Thinking to buy a house and trying to settle down, just thinking anyone has any experience with any home loan or bank?

How do the loans work? do i have to get dressed nicely to get more loan approved infront of the bank manager?

what's buyers? and anyother fees that are involved that are not included in the house price when buying a house?

how much desposit? or should i go to one that requires no depsoit and get the loan re-financed later on when i have?

Thanks so much in advance

hp
can fill you in more on this...Sunday over a coffee
but basically..2 avenues
via your bank or via a broker
If you feel comfortable with your own bank talk to them
if..you know 'nuffink' talk to a broker

me...?
after a series of loans over the years
just paid two of 'em off

..one to go (and the one remaining is one BIG MoFo)

cheers

esie · Post by **esie** » Thu Jul 06, 2006 5:29 pm

hidepenny wrote:Hi all,

Thinking to buy a house and trying to settle down, just thinking anyone has any experience with any home loan or bank?

HP, I worked for a regional bank for 13 years, the last seven in retail and commercial lending. I can see the attraction of brokers, in that you don't have to do the homework yourself, however so many of my customers who went through brokers and were referred to my bank said they would never ever use a broker again. On the reverse side, I know many people who have said that they were happy with the service.

Basically, if you have established a good relationship with your bank or financial institution, go and see them first. Then shop around, if you are happy to do it yourself and cut out the middleman. If you are going to see a broker, pick and choose your broker. Browse their websites, and ring them to discuss their services, or other words, shop around. If the broker says anything about upfront fee, or fee from settlement duties etc run away! The broker should be getting paid by the bank for the referral. Many of those who wouldn't see a broker again said that they felt that they were just another number, once the broker had signed them up, they couldn't get service from their broker as he had moved onto the next target.

hidepenny wrote:How do the loans work? do i have to get dressed nicely to get more loan approved infront of the bank manager?

Once you front up for your loan interview, it doesn't hurt to be neat and tidy - good impressions last

hidepenny wrote:what's buyers? and anyother fees that are involved that are not included in the house price when buying a house?

Being that you are Victoria, the fees, both government and bank, would be quite different to Qld. A person buying in Qld would be up for the following fees, or variation thereof :-

Bank
Application Fee say $495
Valuation Fee say $220
Settlement Fee say $90
There may be extra fees, depending on the bank and security, such as additional security fee, documentation fee etc.

Government
Stamp Duty
Searches

Other
Lenders Mortgage Insurance (covers the institution for the debt, not you). Applies if a borrower provides less than 20% deposit/equity. This is the most expensive fee, generally a few thousand dollars worth.

hidepenny wrote:how much deposit? or should i go to one that requires no depsoit and get the loan re-financed later on when i have?

Generally, 5% is a good figure. In Qld, if a borrower has 5% deposit, their mortgage insurance calculation rates are cheaper than if they only have 3% deposit. 3% is considered a genuine deposit nowadays though. Personally I wouldn't recommend 100% finance to anyone. I can see that they are an attractive proposition to families and whatnot who would find it difficult to save the deposit as well as pay the rent. However, if you want to a) refinance or b) sell the property and move, you are very dependant on the property value rising sufficiently to allow this to occur. With the way valuations are sitting steady at the moment, it would be sometime before this occurs.

Good luck with your purchase!

hidepenny · Post by **hidepenny** » Thu Jul 06, 2006 6:10 pm

thx guys for the info, i'll give senyen's broke an email to find out more, i'm so sick of paying rent, and now i'm stable with my job and thinking to settle down, looking for a house may be around $300k

thinking to get my gf involved as well to help with the repayment, so once we get married and if "touch wood" divorced, then she can take the 50% that she paid for instead of the 50% that i paid

repayment's gona be $2000 a month i think, not gona be cheap, but better than renting, so i could probably get my parents to come over to live as well

.........welll not really wanted to but, they'll be happy to experience different relaxed life style

and location too!!!
big decision, at the moment i'm thinking.........mulgrave seems to be the best option, close to freeway and work and decent suburb too , not like springvale or something never heard of suburbs

diesel · Post by **diesel** » Thu Jul 06, 2006 7:00 pm

HP, i also worked for a bank in commercial lending.
basically what esie said is good advice, but if you wanna chat more about it, i'll see you on sunday, if not then on the 22nd. happy to help

sluglie · Post by **sluglie** » Thu Jul 06, 2006 7:16 pm

hp, mulgrave is a nice quiet suburb (i should know, i live here) very close to all the amenities you could wish for, and not stupidly pricey.

oakleigh (south or east) are also good, quiet and plesent (most of oakleigh is golfcourses)

revinR1 · Post by **revinR1** » Thu Jul 06, 2006 7:19 pm

As others have suggested try and go thru a broker.

I just bought my 2nd place (after work relocation and selling 1st place) I again went thru the same broker.
Basically a broker saves you from ringing around and seeing what the banks and credit union are offering.Sometimes a broker can get you a little better deal,like getting the loan establishing fees wiped .They will also tell you about special offers (where the banks some times forget)

They dont cost you (unless you pull out at the last minute) they are paid via commission from the banks.You can also arrange for a pre approved loan.

Dont forget to budget into your loan the cost of legals (your solictor fees mine where around $9,000)

Have all your documents ready for when you have your appointment (Current last 3 pay dockets,Last years Tax return,photo copy of your licence,some bank statments *hint* its worth trying to show a stead balance,this proves you are "saving" and looks good.Dont get your parents to deposit a large amount to boost your balance,this looks BAD**)

Do your self out a little budget sheet,work out what you get paid (weekly/fortnightly/monthly) then take out your bills and living expence`s,see if you have enough left to be able to live and have a house payment.(*hint*always try to have at least 1 payment in your bank for emercency).

That was the good side now for the bad

.Take into account when you buy your own place you will also have little hidden extras like RATES you pay the 1/4ly so budget for them,power,electricty,phone etc you know what cost you now so there about the same.Remember that NOW if that hot water service or oven etc blows up YOU have to replace it. A lot of power companies offer a service where you can pay off a new hot water service thru them so that may be worth looking at when a time comes.

Other things to look at are if you can afford it at the settlement time give the place a paint (about $400-500 done yourself) its easy to do when no furniture is in.If the place needs carpets again try to replace before you move in. Take into account if you look at a vacant place the rooms alway seem bigger than they actually are.Dont be afraid to turn taps on/off,turn on/off light switchs etc when looking at a place.**Hint open and close every door in the place,No joke when I looked at a places you`d be suprised the amount of doors in kitchens that fell on the floor and some bedroom doors rubbed on carpets**

Look at your needs and wants,for eg if you want a double garage ,no good buying a place with single garage unless you can afford to replace it later(make sure theer is room on your boundrys to extent also if needed)

I cant stress this enough,Make sure you get a Building and pest inspection.Your real estate should be able to help orginaise this,they will cost you a bit but its worth while,but remember they are trained to "find things wrong" and you can always as the vendor to fix some of these.

Lastly always offer about $10,000 to $15,000 less the the slae price,they will make a counter offer and you go from there.I managed to get my place for $10,000 less than asking price

.

Want to look at places in your area have a look at this site ,hopefully it`ll help you

http://www.realestate.com

Sorry for a long post (and probally a bit baffling) but I thought it may be of some help and assists

SenNey · Post by **SenNey** » Thu Jul 06, 2006 10:23 pm

And if you can and want to set up and ING savers account
Get them to take some money out of your wage each week.
I started off with $1 and upped it every month.
It soons builds up, interest paid daily.
If you want the money you have to transfer it back to your normal bank account. Gets rid of the inpulse buying . Normaly takes 2-3 wroking days.

It also establishes a savings history.
If your parents/friends etc want to give you a large sum as a deposit,
Split it up over 12 weeks or so.
Looks much better then a huge injection of cash.

best of luck take your time, there is no rush.

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