Buying your first home is an exciting, yet stressful, process that many Australians dream about. Fortunately, there are several steps you can take to actively simplify your first property purchase. Oak Tree Finances has compiled the following tips on how to buy your first home so you can familiarise yourself with the planning options available. Buying a home is a life changing investment that requires preparation and hard work, so it is important to start right.
Make buying your first home a reality by contacting Oak Tree Finances for first home buyer home loans. Get in touch with Oak Tree Finances, our expert professional staff can help you secure a home loan at great rates. Call us on 0404 403 066 today!
How to Buy Your First Home
Set a budget
Start by creating a detailed outline of your current and future finances to give yourself a clear understanding of what you can afford, borrow, and repay. Don’t rush this step, every person’s situation is unique so take time to perform a frank assessment of your expenses and income. Remember to plan for both positive and negative possibilities and set realistic financial goals. Gain a general understanding of the loan repayment you could safely manage month to month by subtracting all your monthly expenses from your total monthly income. These numbers may change but they do provide you with a reasonable set of figures to work from.
Perform Research
Buying your first home will require you to start understanding the real estate market you want to purchase in. It could be local or in a different neighbourhood, either way, you will need to have a solid idea of the trends in your area of choice. You’ll also want to have a good idea of the type of home you want to buy, make a checklist of the features most important to you.
Start Saving
Once you have a good idea of your budget and the area you want to buy in, start saving for a deposit. Your research should give you an idea of the housing prices available and we recommend saving a minimum of 10% of the purchase price. The more you commit to the initial deposit, the lower your loan repayments will be, so save as much as you can within a time frame that works best for you. The issue is that if you take years to save a deposit the property prices can increase faster than you can save so for many First Home Buyers a deposit bigger than 10% is just not possible.
Loans and Borrowing
Calculating how much you can borrow is a combination of your affordability and the deposit you have available. Prepare by speaking to a Mortgage Broker who can outline all the fees and costs associated with taking out a home loan.
A Mortgage Broker can assist with research of the best lenders, loan products and options for your situation. Don’t rush into buying your first home it is best do your research on the area you want to buy and get your loan approved beforehand. Having your loan approved beforehand is called a Loan Pre-Approval. Lenders can approve your loan subject only to a valuation so you know exactly how much you can borrow and when you find a property the only thing that needs to be done is a valuation on your property.
Choose a Home
Start talking with the seller or real estate agent once you find a property you like. Before you make an offer or sign a contract you should speak to a Solicitor or Conveyancer. Once your offer is accepted you should also have a Pest and Building inspector conduct a thorough inspection of the property to ensure its quality.
Final Steps
Don’t forget to think about arranging insurance on your new property which in most states should be done when you sign the contract and not when you get the keys. Arranging moving trucks, connecting electricity and services at the new place will all need to be arranged and are best done earlier than later. Finally, settlement day will arrive, and the property title will be transferred to your name; once everything is finalised, you will receive the keys to your new home.
Get Started with a Loan Today!
Take an important step towards homeownership by contacting the professional loan team at Oak Tree Finances for first home buyer home loans today! We can help you find the best deal available. For further enquiries, call us on 0404 403 066, e-mail us at loans@oaktreefinances.com.au or reach out to us via our online contact form.