All you need to know about buying your first home
Buying your first home is one of the most exciting times in anyone’s life. It provides you with that sense of security; you own where you live. No landlord to kick you out when he decides to sell, no one telling you not to paint the kids’ bedroom purple, and why shouldn’t you hang a hammock in your living room? Well, now you can. Your home is your place to do with what you like. But first, you need to go through the process of finding the right home at the right price. Feeling a little daunted? You shouldn’t; here’s a guide to help you on your journey to buying a first home.
You need to get all your financial ducks in a row upfront. There’s no point finding the perfect home if you can’t act immediately. If two buyers offer the same amount, but one has pre-approved finance and you don’t, chances are you will lose out. Speak to your lender and get a pre-approved bond.
When you add your deposit to your approved bond amount, you will get a very good idea of what you can afford. Remember you will also need to pay purchase costs on any home you buy, so factor that in. You also don’t want to live life on the financial edge, so leave some margin for economic fluctuations. Buy within your means.
First home buyers grant
While you are sorting out your finances, it’s an excellent opportunity to apply for your First Home Owners Grant, if you think you are eligible. Most lenders are suitably authorised to process this application on your behalf. It makes sense to sort this out with one party instead of two, making it quicker and less expensive.
If your grant is approved, in most instances it will be processed by the time of your property settlement.
By now you should know what your repayments will be, but you can calculate it yourself by using any one of many online calculators.
Find a house
You’ve done all the research, your loan is pre-approved, you know what you can afford and where you can afford it. Now it’s the fun part, finding the right first home. See as many homes in your price bracket as you can. This will give you a good feel for value and for the areas you are looking in. Once you’ve seen a few homes, you’ll get a much better picture of what you want.
When you find something “ideal”: maybe seek a second opinion from friends or family, go back for another look, and when you are ready to commit, you’ll know it.
Try reducing your excess debt or consolidate it
Before going into more debt try eliminating or reducing your current debt as much as possible. This may involve taking out a bigger mortgage so you can pay off other debts which have higher interest rates. This also means you can consolidate all your debts into one, making it easy to manage with a lower overall interest rate.
Move in and enjoy your new home.
Contact us to make your first home purchase an enjoyable and successful one.