8 TIPS FIRST HOME BUYERS MUST KNOW
With a competitive real estate market up ahead, buyers need to be better prepared. But for some, particularly first home buyers, this could be a daunting task. Here are some considerations to put you at ease and ensure you are well informed.
Factor in future interest rate changes
Mortgage interest rates are continuously fluctuating and the outlook is unpredictable. When setting your budget, take into account interest rate changes. Home loans generally have an option of fixed or variable interest rate, or a combination of both. A mortgage calculator can help you estimate your home loan repayments. The decision on which option is best for you depends on your flexibility, financial situation and goals, and economic conditions.
Shop around for the best home loan
As a first home buyer, your mortgage may be the largest debt you have. There are various home loan providers and products in the market, so take your time to shop around, analysing and comparing each option before selecting one that suits your requirements and budget. An offset account can help you pay your loan faster and minimise the costs associated with your loan. Visit iSelect or Aussie Home Loans today for a quick comparison.
Maximise your approval chances
Financial institutions will assess how organised you are with your finances. For a first home buyer, make sure you have an accurate budget, which accounts for all the costs associated with your property, check your credit rating and make sure all your existing debts are paid off. To further increase your chances, present your employment and income records to demonstrate consistent repayments.
Understand the legal requirements
Before signing the property papers, understand the legal requirements and your rights has a home owner. As a first home buyer, you may be eligible for a First Home Owners Grant, a Federal Government incentive. For more information download Your Guide to Buying a Home or speak to your lender or broker.
Location! Location! Location!
Location is the most important factor when searching for a property, and it will save you a lot of time if you know approximately where you want to live. Do some fieldwork when searching for your first home. The best way to get to know an area is to research online. Also explore the suburb and surrounding areas to get a feel of the environment. Go to inspections and talk to agents about the area.
Get a property inspection
Unless you are a qualified builder, engineer or architect, a building inspection from a professional is a necessity. Although this is a cost, it is one that cannot be overlooked. A property inspection can bring about structural faults such electrical wiring, plumbing or termites infestation, that would have otherwise been missed. In addition, this will save you time and money in the long run. Here is a representative inspection checklist for your new home.
Use a helping hand
Buying your first home is a tough decision, and you should never take this step alone. Although you may seeking a home for yourself, consulting with an agent, mortgage broker, lawyer or even your parents or guardians, will allow you to make the right decision. Such experience people can guide and advise you through the process.
For a first home buyer, this is exciting, but don’t get carried away. Take a step back and be sure of what you really want. Does this property meet your needs? Is it the right one for you? There are sentiments associated with your first home, and we know it is hard to detach from that, however, thinking with a clear mind will help you pick the right home. Do not be disappointed if you haven’t found the right house or apartment, all good things take time.
These features are sure help you get a better understanding of the property market and what you, as a buyer need to do. Buying your first property is an exciting moment and a great learning experience.
Good Luck !