Looking to purchase your first home? That’s great – it’s an extremely exciting time in any person’s life. Here are some tips for ensuring you get the best out of buying for the first time.
If you are considering purchasing your first home, you should already be saving for a deposit. The bigger your deposit, the higher your chances of securing a home loan. You will also have to pay less interest on your loan. Ideally, you want to aim for a 20% deposit since anything below that usually means you will have to pay Lenders Mortgage Insurance (LMI). LMI is a significant one-off fee charged by your lender to protect them in the chance you default on your loan. Utilise a handy savings plan calculator to get started.
As a first home buyer, you might be eligible fo first home buyer grants and incentives including stamp duty concessions. Talk to the mortgage brokers at SDK Finance about concessions currently available to you in or state. First home buyer concessions could save you thousands on unnecessary costs.
Pre-approval is an indication from a bank of how much money they are willing to loan out to you. It includes submitting details of your financial situation and the borrowing requirement that you are after. It’s helpful because it can allow you to act quickly when purchasing your home, gives you confidence in how much you can afford to pay and shows agents/sellers you are serious about your purchase. All this can provide you the edge if several other buyers want the same property as you.
To improve your eligibility for loan approval and borrowing capacity, it’s smart to minimise your debs. Clear your credit card debt and throw out any unnecessary cards. Also, ensure you pay all your bills on time to ensure you have a clear credit history.
The price of the property is not the only cost involved when buying your first home. You will also need to calculate the cost of building and pest inspections, moving costs, stamp duty, conveyancer fees and loan administration fees.
Your first home will most likely be the biggest purchase you have ever made (and possibly you ever make), so ensure you get the facts straight.
Research the area you want to buy in. Look into transport, schools and shops. You might also want to consider renting in the area before you buy. Understand the local real estate agents as they can provide you with sound knowledge of the local housing market. But remember to take their advice with a grain of salt.
Ensure you arrange building and pest inspections or a strata search if you are buying an apartment before finalising your purchase. If there is any structural or termite damage to the property, this might change the price you are willing to offer or even your decision to purchase.
The home loan market is complicated and fluctuating. There is a lot to understand, and fees and rates are constantly changing. Your SDK Finance broker can help you negotiate the complexities of the market, research finance options and take you through all of the jargon-laden paperwork.