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What to expect at your first meeting

Do you know how to start talking about your property plans?

The Genworth Streets Ahead Homebuyer Confidence report from March 2016 showed a drop in how people felt about getting into the market, for the first time in nearly a year. In particular, first home buyer confidence took a dive. And that's quite understandable - just look at the property prices in your nearest city.

But for Suzy McDonald at Yellow Brick Road Milton, talking about these barriers is halfway to overcoming them. She takes a holistic and finely tuned approach to home loans, which has helped many a first home buyer get onto the ladder. It all starts with that first conversation. But what can you expect in it?

Who you are

Your decision to buy a property begins with you - and one of the first things Suzy wants to understand is who that is.

Taking your family into account is one of the most important steps for working out a home loan strategy.Taking your family into account is one of the most important steps for working out a home loan strategy.

"We sit down and talk about people's family situation - are they married, do they have kids, are their parents involved in the process, what do they love about their ideal home - we cover who they are and what they love," she says.

"Different lenders will look at different things. Family payments can be included with some lenders, we might need to look at maternity leave strategies, and who will be servicing most of the loan?"

By taking on board the full spectrum of your situation, Suzy's holistic approach quickly establishes exactly what you need.

The basic terminology

"A lot of the time, when first home buyers come in to see me, they don't even know where to start," Suzy says. "So we start right at the beginning."

For many people, this includes going over the basic terminology of buying property. What are variable interest rate is, versus what a fixed interest rate is. How an offset account works. What on earth lenders mortgage insurance is.

There is a wealth of terminology associated with real estate that can be a huge barrier between first home buyers and their dream. Suzy breaks this down into simple terms for anyone who needs it.

Inside information on lenders

Nobody likes dealing with banks. Fortunately, Suzy works on your behalf to prepare and present the best possible application for a home loan that you can put together.

"We look at what lenders always ask for, the documentation that people will have to provide - and sometimes a bit extra," she says. "We'll go over what lenders consider to be income, whether any bonuses or penalty rates factor into your mortgage application."

This goes beyond the lender - Suzy can run first home buyers through the conveyancing process, and even conduct comparative market analysis to make sure you are looking in the right areas for your dream home.

What your borrowing power is going to be

"The most important thing for any home loan is its serviceability."

"The most important thing for any home loan is its serviceability," Suzy says. "That is, what your capacity is to meet the repayments."

"This includes things like the assessment rate, which is often a 0.25 per cent addition to interest, to ensure your loan's serviceability remains if the interest rate increases in the future."

To work out your borrowing and servicing power, Suzy can lead you through a discussion of what you currently pay in rent or mortgage repayments, and what your maximum capacity might be. It's essentially a measure of what kind of home loan you might be able to secure.

And that's all just in the first conversation. You can cover as much or as little as you want, all in one free consultation. Suzy understands that most people struggle with a lot of concepts surrounding home loans - which is why she want to make sure no one has to ever again, with holistic financial advice.

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