5 things every first-home buyer needs to know

Thinking of buying your first home and don’t know where to start? Before you decide to purchase your first property there are a number of things to consider, including your current personal circumstances and financial status. Here are some tips to help you get started.

1. Think about why you want to buy a home
Do you want to live in it or will it be an investment property? This can help determine the kind of loan you apply for, home you buy, depending on your short and long-term plans.

2. Research potential properties and loans
Knowing the market is crucial, so do some research on the areas you are targeting, check out auction clearance rates and recent sales, as well as price trends in the area. Once you are aware of what you are looking for and the approximate price.

The old saying “the best time to plant a tree was 20 years ago, the second-best time is now” definitely applies to your savings. This can also determine the home loan options that may or may not be available to you. While some lenders will offer loans if you have saved less than the “usual” 20 per cent deposit, being able to show a record of good saving habits will aid in getting your loan approved.

Talk to your Finance Broker about applying for a pre-approval on the right type of loan and ask for their help to work out what you can afford in terms of repayments. You should do this before making an offer on a home so that you know how much you could borrow and any possible conditions before leaving a deposit.

3. Factor in other costs involved
Depending on the property, there can be a number of additional costs. This can include, but isn’t limited to, stamp duty, loan establishment fees, legal and conveyance services, utilities, property insurance, maintenance and lenders mortgage insurance. You may also be eligible for concessions or exemptions, so ask your finance broker what other payments you will face.

4. Think about your future
Just because your current situation allows you to get a home loan, that doesn’t automatically guarantee that you will still be able to service it in five years’ time. Is there a possibility your role at work will change? Are you considering going back to study and reducing your working hours?

5. Get professional help
With so many things to consider, it can be overwhelming, getting professional help to guide you through the process is highly recommended. There are many experts in the industry and it is in your best interest to use them for tasks such as property checks, pest checks and any other legal queries. Going it alone can prove costly. Avoid nasty
surprises down the track by getting the right people to do the appropriate checks for you from the beginning.

Credit Representative 487350 is authorised under Australian Credit Licence 389328 The information provided is general in nature only. Your full financial needs and requirements need to be assessed prior to any offer or acceptance of a loan product. *Subject to lender’ criteria, term and condition as well as fee and charges.