5 things all first home buyers must know

Before you decide to dive into the purchase of your first property, there are a number of things to consider to make it go swimmingly. Your current personal circumstances and financial status will pay a huge part during all the decision making processes. Here are the Top 5 things to consider when buying your first home:

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 and the home you buy, depending on your short and long-term plans. Look at market research e.g. what accumulates value in properties?

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. A really handy app to download is the RealAs app, they provide accurate sales predictions and are a platform where sellers can exchange information about individual homes.

Once you’re aware of what you are looking for and the approximate price, the next step is saving a deposit.

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 also aid in getting your loan approved.

Then, when you talk to your broker about applying for pre-approval on the right type of loan, ask for their help to work out what you can afford in terms of repayments.

 3. Factor in other costs involved

Depending on the property, there can be a number of additional costs, so ask your credit adviser what other payments you will face. 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.

 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, getting professional help 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.

You might find our ‘Things you should never forget to ask the agent’ blog post helpful too.

Profy an MFAA accredited broker, can assist you in making informed and sound home loan and credit decisions. Contact us today to help you get ahead.