Buying your first home is likely to be the most important investment decision that you are likely to make. That “feel good” factor is likely to disappear very quickly if the decision that you make are made in haste or without sufficient thought.
Here are some valuable tips to help you be confident in buying your first home.
- Get your finances in order. When seeking your first home, existing debt will limit your capacity to borrow and/or service a home loan. Work to reduce any existing debts and maximise your initial deposit. The more equity you have in your own home, the more flexibility you will have in your loan arrangements and overall financial situation.
- Make sure that you are eligible for a home loan. It’s a good idea to have a discussion with some reputable lenders or agents to establish what you can realistically and comfortably borrow.
- Gain a solid understanding of all the costs associated with buying and financing a home. Loan and purchase costs can present a nasty surprise for the unprepared. Do your homework – research stamp duty, registration fees and ancillary costs associated with the home purchase.
- Research any potential grants or offsets that you may be entitled to. Make sure of your eligibility for any first home owner’s grant or stamp duty concessions
- Look at any potential property purchase with critical eyes. If you know a builder, get them to take a look at the structure of the property. If not invest in getting a property inspection report. It’s better to learn that the property is in need of restumping prior to purchase than after.
- Get expert help. To make your property purchase run smoothly, you need the help of people who know the business. Don’t try and do this yourself. Reputable mortgage brokers and conveyancers will pay for themselves many times over.
- Have a plan. Know what you want, what you’re capable of doing after purchase and how much you can afford.
When you put these tips into practice, you will find that you are much more confident and secure in making that all important first home purchase.