Buying your first home can be an exciting experience, but it can also be stressful and overwhelming if you’re not confident and knowledgeable.
Here are some tips that will put you in the best position to make a sensible and profitable home-buying decision.
Do the Groundwork
Before you even start looking at houses, it is important to do your groundwork, for example:
Take a hard look at your finances, and determine what you can afford. Have a look at your budget to determine what you think you can easily afford without overextending yourself.
Learn about government grants and incentives that can help you in your first home purchase.
Work with a Mortgage Broker to get Pre-Approval
Several factors come into play when you’re deciding how much deposit you need to buy your first home, what you can afford to repay regularly, how high your LVR is and what type of loan and the lender you apply with, will all impact the desired size of your home loan deposit. Generally a minimum 5% deposit is desirable.Your mortgage broker will guide you through the process to give you a pre-approval.
Develop a Routine
Buying a house takes a lot of consistent hard work and time, and if you don’t take it seriously, you may find you’re left with a sub-par result. Therefore, it is important to get into a routine of searching for homes and doing your research. For example, you may want to do your research on line in the evenings when you get from work, and you may want to drive around at look at houses on the weekends.
Hire a Building and Pest Inspector
So you’ve found a house that you like, don’t let your emotions get in the way of making a smart decision. Engage in a qualified inspector and have the home carefully inspected from the inside out. This will allow you to be fully aware of any potential problems such as pest infestations and structural problems. It may cost a little extra for the service but imagine how much you’ll save if it turns out the property has a myriad of problem.
Back to the Mortgage Broker
Your mortgage broker will help you complete the process to complete the paperwork.
Congratulations! You have purchased your first home!