What to know about getting your first home in 2021
Has getting a loan changed since the start of 2020? Here’s what you need to know about getting finance in order to buy your first home in 2021.
For all of us, 2020 threw up plenty of unexpected challenges. For those trying to buy a home, there were likely even more.
However, going through the home loan process is now easier than ever and if you’re looking to buy in 2021, here’s what you need to know.
You’ll need to be prepared
Whether you think you’re ready to buy immediately or it’s something you’re working towards, start researching and seriously considering your options now. Have a conversation with your bank and find out what you need to get organised.
Know what you need and start doing your research even if you think you’re not quite ready to buy. Picture: Pexels
“Do your homework on properties before buying and speak with a lender,” NAB Mobile Home Loan Specialist, Belinda McGovern tells realestate.com.au. “Look at your options to ensure you’ll be ready when you want to make the move.”
Research markets, do inspections, find out your borrowing power and then start thinking about conditional approval.
You’ll need to be ready
Conditional approval typically has a three-month expiry date. So, you’ll want to be close to landing your dream home before you make this move.
Having said that, you don’t want to miss out on properties because you don’t have finance. This means you will want to have conditional pre-approval before you start making offers.
Have a few houses you’d be happy to buy in mind when applying for pre-approval. Picture: realestate.com.au/buy
So, what’s a first-time buyer to do?
The answer is be ready with not one, but potentially two or three homes you’d be willing to buy. Then, go straight to the bank with your choices.
Go through the journey online
A by-product of 2020 is that both the loan application and home buying processes have transitioned quickly to online technology.
“At NAB, you can now book an appointment online, allowing customers to choose a time that is most convenient for them. Customers can also choose to have these meetings via Zoom rather than face-to-face,” McGovern offers as an example.
“We talk to you about your specific financial situation and what are the best options for you.”
It turns out no industry has been spared the Zoom boom!
Have Zoom meetings with your bank and apply for your loan online. Picture: Pexels
What’s more, you can start and finish your application online. This allows you to get things moving whenever you like without having to visit a bricks-and-mortar bank during traditional business hours.
“At NAB we’re making it faster and simpler to get people ready to buy,” McGovern says.
NAB Executive Home Ownership, Andy Kerr adds, “We know the home loan process can be daunting, and we’ve taken a number of steps to simplify this process and the time it takes for approval. We want to make the experience of buying a home simpler for all our customers and support them with the confidence of an approval as quickly as possible.”
Looking for your dream home?
Use the NAB calculator to estimate how much you could borrow and compare different scenarios.
If pre-approval expires, don’t worry
While it helps to have your conditional approval as close as possible to your home purchase, it isn’t vital. If it happens to expire before you’ve bought your home, don’t panic!
You won’t need to go through the process from scratch. If there hasn’t been any changes to your life, you can ask your bank to simply roll over your details from last time for re-approval. Then, you’re good to go.
A NAB home loan specialist can answer any questions you have and can guide you through the entire process. The NAB Appointment Booker tool makes it easy to book a time to talk to a home loan specialist. Make your appointment online now at nab.com.au/book
The information contained in this article is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, National Australia Bank Limited ABN 12 004 044 937 (NAB) recommends that you consider whether it is appropriate for your circumstances. NAB recommends that you seek independent legal, financial and taxation advice before acting on any information in this article. NAB’s credit products are subject to terms and conditions, fees and charges and lending and eligibility criteria (available upon request). ©2021 National Australia Bank Limited ABN 12 004 044 937 AFSL and Australian Credit Licence 230686
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