First Home Buyers
How Do I Buy My First Home?
You've thinking of buying your First Home and it may all seem a little daunting.
Where to start, what you need to consider and all those decisions to make!
You may be able to relate to this.
We've put together some helpful topics that you may want to consider when looking to buy your First Home.
Jot down a list of items you may want to look into before starting to look through home opens;
We can all dream of the best place to buy, you know the saying - location, location, location. However reality is much more important. Consider where you would love to buy, then some other suburbs that may be the next closest to your dream. Where some may be able to afford their dream location, the majority of buyers will need to make it a step by step process over years of savings/hard work. Where you work, the places you go to on the weekend, location to family and of course, travel time.
What size do you really need? We all would love to living in a spacious large home that could accommodate all our needs from early to retirement, but often we need to look at a shorter (5-10 year) plan. Do you share or live by yourself? Are you thinking of expanding your family (children or parents moving in)? What size would best suit you today and in the near future? Buying and selling costs do add up, however you need to be realistic to buy soon, and you can always upgrade at a later date.
- Must Have vs Wants
This one is a little like dreams vs reality...... write a realistic list as a starting point - you can always update this later. Noting items like a 3 car garage to house your new Porsche may be a want, especially when the area you may be looking at may only offer street parking, unless you are looking upwards of $2m.
Have you done some sensible planning on your income and how much a lender will loan you? There's some handy calculators online, but they won't ever be able to provide an accurate assessment of your individual situation. Have they taken into account credit card limits or debt, other loans, child support payments, money you owe your family, other shopping credit cards? It's a great idea to speak with a broker who will sit down and work out an affordable budget with you, which will include how much you can afford for mortgage repayments. Then they can assist you to apply for a mortgage. this is such an important step, especially before stepping into a home open and falling in love with it!
Have you saved a deposit, are saving a deposit or even know how much you need to have saved before you can apply for a loan? Rule of thumb is you will need 20% deposit saved to be able to get the best interest rate from a lender. There are other options of having a lesser amount, even as low as 5%, however this increases the lenders' risk in loaning you the remainder, so it will be at a higher interest rate. Other options including buying with another party (partner, friend, relative) or if you are fortunate to have parents who can loan a deposit to you or as a family guarantee against their own home.
- First Home Owner Schemes
There are initiatives that assist First Home Buyers with smaller deposits, helping them with the cost of stamp duty and also a savings scheme. Talk to your broker and see some helpful information online here.
You can sign up to every agent's new listing alerts, or set alerts on the main websites. Agents load their new listings on these sites at the same time, so it's easier just to get two alerts per day;
After doing a search (bedrooms, bathrooms, suburb, price etc) you can opt to save the search and set an alert. This includes frequency to receive alerts (daily, weekly etc) and you can edit your searches from your login.
Another cool feature from Domain on their Facebook Page is to set an alert on Messenger for Auction Results, so you can keep up to date on what has sold over the weekend and prices.
Realestate.com.au have a great research tool, where you add a suburb into search, to find the key demographics of the area.
There are a lot of resources online for to find out how much a property sold for, however some agents and owners opt not to make the information public. The results will be released later, however this can be a little frustrating if you missed out on a property ,or the one sold directly compares with the one you are interested in buying.
ANZ has a Property Profile Report, where you enter in the address and details, and they will email you a property pricing estimate and sales history.
Once you have found the property you are interested in buying, please refer back to your Broker and ensure your limits, your Pre-Approval and terms are still current. Sometimes buyers may have spoken to someone a long time ago, but the lender has changed some requirements or perhaps your situation may have changed too.
When you are in a position to make an offer or bid at an Auction, the lender or broker will let you know. Please don’t presume a lender will honor a letter that was current a while ago, or even has expired as banking terms change often.
Other things that need considering are to engage a solicitor or conveyancer to review the draft contract, advise on any additional conditions or amendments to the contract to suit your requirements, pre-purchase inspections, insurance and moving in.
FIRST HOME BUYERS eCOURSE
Do you have more questions about buying your First Home and want to have some guidance?
Many people put off starting the process of buying a home,
as it just feels too hard and complicated. The idea of months of
searching, researching and missing out is sometimes daunting.
This eCourse teaches you simple steps, goes deep into abbreviations and industry terms (so you won't look silly when you ask questions), and prepares you to make an offer or buy at Auction. The knowledge you will obtain fro this eCourse represents a massive advantage for you,
so you can be more confident when dealing with mortgage brokers, agents and other property contractors so you can buy better and sooner.
Like To Know More?
We offer one on one consultations and work with you to find out how much you can borrow. Find the best rates and the best loans that suit your situation. We work with over 30 lenders so have many packages to comopare. For your FREE consultation please click below;