Susan Mitchell is the CEO of Mortgage Choice, a nationwide network of mortgage brokers and financial advisers.
The common mistakes first home buyers make
"Failure to shop around is one of the biggest mistakes a borrower can make when trying to get a home loan. There is a common misconception that going straight to the lender you bank with is going to get you the best outcome when in reality, borrowers are doing themselves a disservice by not comparing options from a range of lenders to find the best deal for their goals and needs.
"Not getting home loan pre-approval is another mistake many borrowers make. This is especially the case if you are applying for your first home loan. A home loan pre-approval is useful when buying your first home as it helps you understand what property you can afford to buy before you start shopping around."
Prepare your finances before approaching a lender or broker
"Lenders will assess how 'risky' you are to lend money to, so it's important that you show them that you have good money habits. Don't spend more than you earn, cut back on discretionary spending 3-6 months before you apply for a home loan, make sure you've established a savings history so you can demonstrate that you are responsible with your money and can make your home loan repayments each month."