Six Tips on How to Prepare to Buy Your First Home

If you’re a first time home buyer, it’s natural to get excited. After all, it’s your first big purchase and your entry into the property sector.

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These six tips will help you prepare adequately to buy your first home at a fair price and without too much fuss.

1. Do a Top-Down Market Value Research/Analysis

A myriad of factors can impact the future value of your home, including re-zoning projects, new developments, constructions, and whatnot. That’s why it pays to do a bit of research so you can know what you’re buying. By having a strong sense of property market values, you can easily see the bigger picture. Any serious Mortgage Broker will have access to property research for you.

2. Have Your Pre-Approved Finance Handy

Again, don’t get caught up in the heat of the moment. It’s best to come up with a budget based on your market value analysis and affordability and stick with it. Ensure that you have the necessary deposit handy and pre-approved finance in writing. Remember auctions are binding on buyers on the day of the auction.

3. Pay Off Excess Debt

Having secondary debt such as personal loans, car loans and credit cards will reduce what you can borrow and place additional outgoings on your budget each month once you have your home loan. Try to reduce credit card limits and pay down as much as possible any personal loans before applying. The less debt you have when applying will go a long way when you make your application. If you have these types of loans and commitments, it may be best to have an initial meeting with a Mortgage Broker who is best placed to advise you on how to structure these loans.

4. Using a Mortgage Broker can come in Handy

It’s paramount to consider a reputable mortgage broker, especially if you’re a first time home buyer. A good mortgage broker will help to advise you on the most appropriate home loan for your needs. After all, credible mortgage brokers have many years of experience when dealing with Banks and their various policies they use to determine credit assessment.

5. Consider First Home Owner Grant (FHOG)

Home Owner Grants are designed to make your home buying experience more affordable. It’s best to apply at the same time for both Home Owner Grant and home loans. Mortgage Brokers can assist with the paperwork and eligibility criteria.

6. Have Someone Else Bid on Your Behalf

First-time home buying can be an emotional affair whether you are buying by way of Private Treaty or by Auction. The last thing you want is to overbid on a home in the heat of the excitement. Consider enlisting help from family or a friend to advise you of the process and how to make bids or offers. Mortgage Brokers may also be able to provide valuable advice. This way, you may get more value for your dollar.

There you are – 6 crucial preparation tips for first time home buyers. With these helpful tips, we hope your first home-buying experience will be smooth and hassle-free.