Buying your first home is an exciting experience, but it can also be a daunting and confusing journey if you don’t know what you’re doing. At Launch Finance, we want our First Home Buyer clients to enjoy the process of purchasing their first home, so we have put together our checklist to get you feeling buyer ready.
Build Genuine Savings
Before you consider taking out a home loan, it’s a good idea to build up your savings first. Lenders will require a minimum deposit and will want to see that deposit held in an account for at least six months.
Pay Off High Interest Loans
A home loan is undoubtedly going to be one of the biggest financial commitments that you will make, so your focus should be on repaying that. Work towards paying off all of your high interest loans first, particularly, credit card debt before taking out your home loan.
While the overall borrowing may be lower than your home loan, the huge interest and extra charges that come with credit card debt could mean hundreds of dollars per month going to credit card interest instead of towards your home loan. Having your other debts under control before you take out a home loan means less worry for you in the long term when making repayments.
Speak to a Mortgage Broker
The world of home loans can be very confusing, particularly for first home buyers. Your mortgage broker will be able to explain everything to you and make the process less complicated for you.
Your mortgage broker will be able to compare loans, provide options for the most suitable loan for your needs, and guide you through the application process. More than just giving you advice, our brokers will free up your time, letting you get back to the fun things.
Before shopping for a property, get your loan pre-approved by the lender first. This will help position you as a more serious buyer when dealing with sellers. In addition, you’ll know exactly how much you can afford so that you can narrow down your options early on. Finally, having your finance pre-approved makes any offer you make more attractive to sellers, which can be especially important in a competitive market.
Research the Market
To get the right deal for you in the current market, you should do some research into property values in the areas you are interested in. This will give you an idea where you can find the right type of property based on your personal preferences and budget, and other practical considerations such as an area’s accessibility, the facilities around it, and nearby schools, if you already have children.
Make an Offer
This step puts you closer to owning a property. You should work closely with your real estate agent in preparing the offer to ensure the offer accurately reflects your intentions. Have the property professionally valued if necessary, and have a professional building inspection conducted.
If your offer is accepted, the offer becomes a contract of sale, and you are bound by the terms and conditions in the offer. As soon as your offer is accepted, you should engage the services of a settlement agent and forward your accepted offer to them. Once your property settles, you will be able to move into your first home!
If you would like to know more about First Home Buyer loans or would like to speak to one of our mortgage brokers about sourcing the most suitable loan for you, get in touch with us today.