Buying property for the first time is an enormous decision and as a first home buyer with little, or no experience in the property market, can make it seem somewhat overwhelming.
Seeking out assistance and guidance wherever possible will only improve your chances of a successful first foray into property ownership, follow these tips and you will be well on the way to choosing a property that’s right for you and your unique situation.
Set your borrowing limit
By knowing how much you can afford to spend before you begin your search. It’s not just the up-front costs of buying the property but also knowing how to manage the mortgage repayments and plan for any unforeseeable changes to lifestyle or income. Make an appointment with a mortgage broker to talk through these issues and have your finance pre-approved.
Have your deposit ready
The bigger the better when it comes to the deposit for the first home buyer. A decent deposit will give you more loans to choose from and even the offer of a lower interest rate because there is less risk for the lender. The greater the deposit, the less you’ll have to borrow, which means less in interest over the lifetime of the loan and the lower your repayments will be over a set term.
Research all the costs
When planning your budget you need to factor in all the expenses included in purchasing a property. As well as the deposit, you may need stamp duty, inspections, insurance, legal expenses, valuations and title search fees.
Check your credit rating
Knowing what’s on your credit file can help you to explain any problems to your prospective lender. By checking your credit report earlier on, you will know what it contains before a lender accesses it. If there is anything on it that isn’t correct, you have time to contact the company that recorded it to get it corrected.
Buying a property can be a complex experience and good advice can help make sure you don’t make any costly mistakes. A mortgage broker can start the ball rolling in applying for a home loan and advise you of the steps involved in closing the deal.
Don’t leave anything to chance, if you’re serious about a property, it’s wise to conduct a building and pest inspection. Make sure the person inspecting the home is qualified to do so, such as a licensed builder, architect or surveyor.
First home buyer assistance
There are various forms of government assistance for the first home buyer, such as the First Home Owner Grant. Depending on the state you’re in, there may be other forms of assistance like tax and stamp duty concessions. To find out more about any grants of concessions for the first time home buyer go to www.firsthome.gov.au or the Office of State Revenue in your state.