The 3 Things You Need to Know Before You Buy Your First Home
So you have made a decision to buy your first home?
That means you are either sick of living at Mum and Dad’s place or no longer want to pay rent. When you buy a property for the first time it can be a very daunting step for many and often a very difficult task to achieve.
There are many things to consider when you buy your first home. It can often be overwhelming of knowing when and where to start. I want to help you take a look at 3 things that could help you get a start in the right direction.
1. What To Buy
This is often the hardest question for people to decide on. Do you want to buy an apartment, house, should it be established or should you build new?
Consider the factors when deciding what to buy. Where do you want to live? Is it close to the city or nightlife, your workplace or do you prefer to stay close to your family and friends?
The answer to the above can then you to look at the house prices and how that affects your decision. Eg, you want a a 3 bedroom family home in a Bayside suburb. If you have $800,000 - $1,200,000 to spend then continue your search.
If your budget only allows for a purchase price of $450,000 then you need to work it backwards to either a unit/apartment in the mid-range suburbs (eg, 15-20 kms from the CBD) or if you are after a house then you would be looking towards the outer suburbs of some 30-40kms from the CBD.
2. Whats your deposit?
In lending terms and for the bank’s acceptance of your application, the bigger the deposit you have the better.
Most people still believe you need a 20% deposit to get into the market however as a first home buyer, you have options with a 10% deposit and also with as little as 5%.
Take the example of buying a home worth $500,000:
A 20% deposit would mean you need to have saved $100,000
A 5% deposit on the other hand would only be $25,000
I can help you determine the deposit amount and maximum purchase price for your home. Just make an enquiry on the right hand side of this page for an simple 10 minute assessment call with me!
3. Not all lenders are the same!
If you have dealt with one bank for your whole life the chances are you do not know the wide range of products and options available in the market today.
As a Broker we have access to over 30 different lenders and can show you multiple lending options and deals which best suit you.
Every lender has a different assessment criteria and lending policy. For Example Bank A might be happy to lend you $420,000 but if you apply with Bank B they might be willing to lend $480,000.
This can make a big difference in your ability to secure the property you want rather than having to compromise and maybe ending up with something you are not that happy with. My job as a Broker is to give you choices and options and make the whole process simple for you.
So that’s just 3 of the many things you need to consider and think about when buying your first home. For a comprehensive overview of the home buying and loan process and to get a complimentary assessment of your borrowing power and deposit requirements, feel free to contact me on 0478 297 646 or via the enquiry form on the right hand side of this page.