Buying your first home can be both daunting and exciting. Quite often first home buyers feel the odds are stacked against them when it comes to purchasing a home.
Despite some obstacles, you’ve just got to be smart about it – all it takes is a little time, mortgage know-how and a commitment to managing your finances.
STEP 1: GET PROFESSIONAL ASSISTANCE.
Having a mortgage adviser on hand is essential for finding the most appropriate mortgage for you. Your adviser has access to most of the leading loans and can really track down the products that suit your circumstances. It’s also important to seek sound legal advice, an understanding of the government grants and incentives as well as a feel for where interest rates are heading. Your mortgage adviser backed by other relevant professionals should help you make your first home buying experience a positive one.
STEP 2: LAY THE FOUNDATION (BUDGET).
Having a defined budget will help you get to grips with your monthly income and expenditure – if you can develop and stick to a budget you will find it easier to factor in a commitment to a home loan later. Think about where you may need to cut back to cater for mortgage repayments, and the impact this may have on your lifestyle.
STEP 3: SET YOUR GOALS AND SAVE.
Once you have a budget you can start to work to achieving your goal. Set yourself a price range for the purchase of a home and consider the costs associated with the purchase.
Besides needing a deposit, home buyers are faced with a string of costs including legal fees, stamp duty and moving bills – just to name a few. Allow for contingencies so when it comes to settlement you won’t be caught short.
STEP 4: DO YOUR HOMEWORK.
The more you know the more confident you will be and the less stressful the process. It’s not only about the type of loan you need. It is critical to match a lender and product to your particular situation. You should also consider how quickly you want to repay your mortgage, and whether you’d like to fix your interest rate or would like some flexibility. With the assistance of your mortgage adviser this can be made easy.
STEP 5: GET PRE-APPROVED
Having a pre-approved home loan enables you to realistically look for a property in your price range. It also gives you power to bid for house or put in an offer as soon as you see it, rather than risk missing out on it if wait. More than that it will give you the comfort of knowing where you stand.
Even with a pre-approval you should discuss it with your mortgage adviser before making any firm offer to purchase. Most lender pre-approvals are subject to terms and conditions and your mortgage adviser should be able to give you the guidance you need before making a final offer.