8 Steps to Buying Your First Home
Have you always wanted to buy your dream home? If you’ve decided it’s time to make the leap, this is a very exciting time. That said - you want to make sure you do it right so you can bring your dream to life, so here are a few key things you’ll want to do to make sure it goes as smoothly as possible.
1. Check your eligibility for a home loan.
Before you get carried away, first check if you’re actually eligible for a home loan that allows you to buy your ideal home. If you have enough savings and plan to put down a huge deposit that’s great - although often people don’t have more than 10 - 20% deposit. Call several lenders to get a glimpse of how much money you can borrow - you can also try out a loan eligibility calculator to help you.
2. Look at all your options.
Research is your friend here. Compare different home loans’ interest rates so that you’re sure that you would get the lowest rate possible. Aside from interest rates, you should also know the different types of loans available, as it should match your needs. Call different lenders to get a better understanding of different kinds of loans. Alternatively you can get a mortgage broker which can save you some time (send me a message if you’d like an introduction).
3. Clear out your bad debt.
Bad debt is things like credit cards, car loans and other liabilities. Doing this will increase the chances of getting a home loan approved. Pay off your current debts before applying for a home loan—focus on debts that have interest.
4. Prepare your deposit.
How much should you save up for deposit? The rule of thumb is having 20% of the home’s value. The advantage of having a bigger deposit is that you can borrow more money and you can apply for loans with lower interest rates. Having less than 20% deposit would mean that you’d have to pay for mortgage insurance.
5. Do the math for ongoing costs.
Prepare not only your deposit and the monthly payments, but also for other costs involved in buying a house such as stamp duty, agent and solicitor fees, inspection fees, and removalist costs. By doing this, you could also find out if you’re eligible for stamp duty concessions or a first home owner grant which can be a big help.
6. Prepare the documents.
Have all the documents and deposit prepared in advance for a speedy sale once you’ve found your dream home. This is essential, especially because it’s possible you’re not the only who fell in love with the property you want. To speed things up you can apply for a pre-approval for a better leverage.
7. Make sure you buy a good home!
It doesn’t matter if you fell in love with the property if you end up in a nightmare situation because of a failed building and pest inspection or countless repairs. Make sure that you’re getting a high-quality property. Examine every nook and cranny of the house, make sure that everything is in order, and hire inspectors to ascertain the property’s condition.
8. Ask for a helping hand.
To save yourself time and trouble, get in touch with professionals who can help you every step of the way. Having a team with a buying agent, broker, inspectors, solicitor and real estate can make everything run smoothly to making sure you do it right!
Buying your first home should be an exciting venture, not a stressful one. Make sure to prepare everything for a smooth journey, and of course, ask for help if you need it. I’m happy to help out if you need a hand! Feel free to drop a message through any of my social media accounts to discuss your next move.
