Buying your first property can be intimidating and challenging if you don’t have the right advice, hence, here are 7 useful tips for first home buyers like you.
1. Make sure you’re eligible for a home loan
Before you dig too deeply into the process, check that you actually qualify for a home loan. To do this, you’ll need to contact several lenders to get an idea of how much money you can borrow. That will give you a realistic understanding of what (and where) you can buy.
2. Research all your home loan options
The home loan market is complex and competitive. You need to compare as many loans as possible to make sure you’re getting the right rate and features. You also need to know what types of home loans are available. Contacting your broker or bank will help you discover the best avenues for investment.
3. Sort out your debt
If you’re already in debt you might find it harder to get a home loan approved, or you may not be able to borrow quite as much. Focus on paying off any large debts you may have before you apply for a home loan. Don’t let this stop you from getting your dream home though! You might still be able to get it regardless of your debts – again, speaking with a specialist will be helpful here.
4. Get a good-sized deposit together
The bigger your deposit the more you can borrow. And you can apply for loans with lower interest rates. While it’s possible to take out a loan with a 5 or 10% deposit, you will have to pay lender’s mortgage insurance if you have less than a 20% deposit.
5. Position yourself for success
If you’ve fallen in love with a particular property, other buyers probably have too. Having all your paperwork and deposit together, plus pre-approval puts you in a much better position to snap up your dream home when you find it.
6. Get expert help
There are professionals who can help you with every step of the home buying process. Buyers agents can help you with the whole buying process, while a mortgage broker can navigate the loan market to get access to the funds needed for your dream home.
7. Figure out your home buying strategy
Do you want a home that has already been built? Or would you prefer buying land and building your own? Buying a home which has already been built has the advantage of being in an established area with established streets, footpaths, nearby parks and, importantly, shops and transport. You could even buy an older home to save money and then carry out some improvements. A new-build home has the advantage of being completely customised to your needs, now and in the future.
While these tips for first home buyers are a start, there’s nothing like professional advice to give you confidence in the home-buying process. Get in touch today!
Disclaimer: The information provided is general in nature and does not constitute financial advice. Please speak to us for recommendations on your individual circumstance and requirements.
Mitchelle Katsande is Head of Marketing and Communications at Benevolence Financial Group. Mitchelle currently holds a degree in International Business and Finance and is currently supported by Macquarie University Incubator and City of Parramatta Council.