Tips for First Home Buyers

There's a lot to consider when looking to purchase your first home.  In this guide, we've tried to touch on some of the concerns which come up as first home buyers; some common, some unexpected.

Do your research on ‘the where’.

Decide where you want to live, through exploring the area and researching what the area will be like in a few years. Also work on understanding what you can afford through considering how much you are willing to compromise. Contact several lenders to get a great understanding on how much you can borrow to get a deeper sense of what and where you can buy. Try out finder’s home loan calculator here.

Start saving for a deposit.

Start a budget and consider all the additional costs associated to the purchase. This might include costs such as moving, renovating, sales and legal fees, stamp duty… the list tends to go on. Be sure to check if you’re eligible for the first home owner’s grant or stamp duty concessions to save some extra dosh in the process. Check out our tips for budgeting here.

Understand the how – home loans.

Compare as many loans as possible to make sure you're getting the right rate and features for you. You’ll also need to know what types of home loans are available. From variable to fixed rate loans, interest-only and investment loans, there are many different types of mortgages which meet many different needs.

Set yourself up for success.

If you've fallen in love with a particular property that’s great! But it’s highly likely that other buyers have too. Having all your paperwork, deposit and pre-approval together is likely going to place you in a much better position than the competition and more likely to win your dream home when you find it.

Beware of the hidden.

What might seem perfect on the surface may have its issues, don’t allow your first big purchase to be a shot in the dark - get building and pest inspections. Examine the quality of the property's fittings and construction as best you can. If there are obvious repairs needed which you’re ok with make sure you get a quote for repairs and factor that into your budget.

There may be opportunities to enter the market sooner than you think.

Discuss the different options with your bank. You might be able to enter the market sooner with things such as Parental Guarantee and Lenders Mortgage Insurance.