Tips To Help You Buying First Home
Buying your first property can be an overwhelming process. First time borrowers can face uncertainty over how to apply for a home loan, how to get approved, the grants they might be eligible for and where they should look to buy. On top of that, the home buying process can be filled with steps you never knew existed and jargon you’ve never heard before.
Plan your budget.
Budgeting give you control over your finances and it is one of the surest ways to achieve your savings goal. You need to be focused on what you really need instead of what you want. There is nothing more important when contemplating buying your first home than planning a workable budget and sticking to it.
Know your limits
Whatever you do, do not buy what you can’t afford. “Don’t look at buying your ideal home for your first home,” says Michael Yardney, founder of propertyupdate.com.au.
“Be prepared to sacrifice on location or quality a bit and use this first property as your stepping stone to buying a better house down the line.”
Save for the deposit
It will help you in two ways. First, it will show your potential lender that you can exercise financial discipline over a period of time. Secondly, the bigger the deposit the larger the equity you have in your property right from the start.
Get into good habits early
The sooner you get into the routine of taking money from your wages before you spend it, the better. Do not make the mistake of applying for your first home loan while you are carrying excessive debt. Make your home loan your top priority.
First Home Owners Grant
Being a first time buyer you may be eligible for some extra help from the Government, depending on the property you’re buying and the state or territory where your new home is located. If you’re eligible, ask your home loan provider to organise the First Home Owners Grant paperwork for you, alongside the home loan. The most appropriate time to apply for the First Home Owner Grant is at the same time you apply for your home loan.