Buying a house for the first time may feel like a daunting experience. We’ve listed five tips that will help make your search for the perfect property easy and exciting.
1. Know What You Can Afford
Know exactly what you can afford before you start looking. Laying out the ground rules will make the remainder of your search much easier.
- Start the process by asking the team at Our Mortgage Options to review your finances and the current first home buyer’s loans. This way, you can find out what size and type loan you will be qualified for, and then you can set a realistic purchasing budget. If you can’t afford what you want, go for the next-best thing and start planning your next property purchase.
- Research the latest government granteligibility requirements and amounts so you can factor that in to your financial calculations. In NSW, the First Home Owner Grant (New Homes) scheme currently offers first home buyers $15,000 toward purchasing a brand new home.
- Learn about upfront fees, such as moving costs, legals, and stamp duty. Don’t forget to include these in your budget.
- Remember that lenders like to see income stability (at least 6 months of PAYG employment), so they can be sure you will pay your mortgage.
2. Know the Market
Research your ideal location. Location is arguably the most important aspect of purchasing a property. Look for up and coming fringe areas, and find the best streets. Selecting two or three ideal locations before you start looking will save you time and energy. Check out a few open houses and attend some auctions in the area. Doing this will give you a feel for what property types and specific locations in the area are really worth, so that when you find your dream home, you will be in an good position to negotiate.
3. Know the Lingo
Master the lingo of real estate agents. Not only do agents use specific terminology, acronyms and abbreviations, they often use persuasive language in property descriptions. We’ve all seen the ad for the ‘renovators delight’ that turns out to be a total dump! Know what you are getting yourself into. A little research will help avoid confusion and misunderstandings.
4. Invest in Inspections
Hire a qualified inspector to help you avoid nasty surprises.
- If you opt for an older property, it is wise to hire a builder or building inspector to look over the house and determine if it has any major structural issues.
- If the house has timber anywhere in its construction, investing in a pest inspection could save you money down the track.
5. Don’t Rush
Buying a home is a huge decision. Once you have decided to buy, it’s easy to be swept up in the excitement and become impatient. It is important to be sure that you are making the right decision for yourself and your family. Be clear as to what you are looking for and don’t buy until you have found it. This might take a week, or it might take a few months.
Let Us Help You
There’s a lot to find out about, isn’t there! The team at Our Mortgage Options can help you through the process, explain all the confusing terms and help you find the right loan. Our service is free for you and we do it all with you in the comfort of your own home at a time which suits you best.
Image credit: Nan Palmero