Top 3 tips for first home buyers
Purchasing a property, let alone your very first property, can be a stressful and daunting experience. However, with the right help along the way it can make a big difference to your outcome, both financially and emotionally.
1. Start saving. Your deposit is the vehicle to achieve your goal.
Some lenders allow just a 10% deposit, but a 20% deposit is better if possible. A larger deposit of 20% will bring down your repayments and allow you to avoid other fees, such as Lenders Mortgage Insurance. Sometimes there are situations though where it does in fact make more sense to take the plunge with a smaller deposit. For instance, a lesser deposit may make sense in a rising property market where the rate of capital growth outstrips your capacity to save. Please make sure you ask me about Family Guarantor Loans too, which is another option.
2. Pre-approve, pre-approve, pre-approve!
This can’t be stressed enough. The best way to find out your position and budget for buying a home is to source a pre-approval. Essentially, this is an approval in principal from a lender who will finance your property, subject to a valuation. A pre-approval will give you the peace of mind to confidently bid at auction and will give you the ‘upper’ edge if you are interested in a popular property. It will give you a clear idea of your financial position enabling you to move forward with confidence.
3. Shop around. The importance of a Mortgage Broker.
Gone are the days of limited options when shopping, even for finance. We have so many different ways now to buy goods and services; and your home loan should be no different. Not only are you looking for a competitive interest rate, but there are product features that may be important to you now and in the future. Different banks offer different products which have varying features and fees. So you can see why it's so important to compare. This is the largest purchase and the biggest debt in your life. The goal is to save money. As they say it’s better in your pocket than the banks!
Buying property as a first home buyer can be an empowering and exciting experience. It needn't be stressful if you have the right guidance and support to hold your hand right through to the very end and thereafter.
I have helped hundreds of first home buyers achieve their dream of home ownership and I offer obligation free appointments to find out if this is achievable for you. For more information and to book your appointment please call me on 0424 463 302.