First Time Home Buyers – Get Into The Market With These 6 Tips

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Category: Buying My First Home

First Time Home Buyers – Get Into The Market With These 6 Tips

Purchasing a new home is a really big move. It requires a lot of time, research, and money and as you start the process, it can be a little daunting. For many Australians, buying their first house marks a memorable and significant milestone. 

Fortunately, with the right financial consultation and the correct preparations, one can reduce the stress and make the home buying process much simpler. We can help you get the suitable home loan and offer excellent support. 

If you’re a first-time homebuyer, here are a few helpful tips.  

Know why you’re buying

Regardless how obvious it sounds but, having clarity of why you’re buying a new house and what your goals are – is extremely important. 

  • Make a list of everything you wish to have in a property and its surroundings. 
  • Remain objective whilst viewing many different properties. 
  • Be clear about your capacity to borrow.
  • Think about the lifestyle you want.
  • Envisage the purpose of the property over the period of time. 

Understand your budget 

After deciding to purchase a house, the next crucial step is to understand your budget. You need to have a good understanding of your finances and know that you’ll be able to afford the monthly minimum payments for your home. 

  • To understand this better, calculate your monthly income.
  • Make a list of your expenses and debts.
  • Properly assess your savings.
  • Prepare yourself for additional homeowner costs like maintenance, insurance, property rates and repairs.
  • Take help of repayment calendars for your loan. 

Get in touch with a financial consultant

It’s important to keep in contact with your lender during the home buying process. For a good mortgage broker, look for the renowned service providers around. It will help you to keep in mind your borrowing capacity, the changing lending criteria (if any) and enable you to look at the right type of properties. 

  • Your financial consultant will help you compare home loans
  • As a first-time buyer in Australia, you may be eligible for a first home buyer grant.
  • They will liaise with the lenders whilst you focus on finding the right property.
  • From application to approval – you can rely on the service providers.

Gather the essential paperwork

Paperwork is an essential requirement while buying a property or having conveyancing work done. Lenders will require you to submit certain documents to show that you can afford the loan and make monthly payments. While the documents may vary from lender to lender, here are some of the common ones.

  • Tax returns.
  • Most recent bank account statements.
  • Other investments and assets statements.
  • Proof of Identification.
  • Proof of savings and current debts.

Ensure you choose a suitable location

When you’ve decided to buy a new house and are ready to spend so much money, choose the location of your new property carefully. To help you buy the home of your choice at the right price, consider –

  • How far is it going to be from your family, workplace, or friends
  • Map the nearest shopping centre, hospital, school, and other infrastructure that you’ll require
  • How many properties are for sale in those suburbs
  • Look at community statistics for the area (crime rates, demography),
  • Research the historical future capital growth potential of the area

Have a house inspection

An inspection of the property will enable you to be aware of any serious issues that may not be visible. It is worthwhile for a number of reasons –

  • Problems like electrical issues, termites, ventilation, and other concerns such can be inspected.
  • If there’s any such issues, it can be used to re-negotiate the purchase price.
  • You can also have the appliances tested. 
  • This will be beneficial and help you reduce possible future costs

Whilst making these important decisions and spending so much buying your own house, it’s always wise to get in touch with a financial consultant. Not only they will help you make the right choice, but will also make the loan process easier. 

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