Owning a home is something that many different hard-working people dream of. Homeownership is closer in reach than many people tend to think. If you are interested in beginning your house searching, then you may be confused about where to start.
It helps to keep a few tips in your head as you start to enter the world of becoming a first time home buyer. This means you will be in a much better position when it comes time to buy your dream home.
Do you know where you stand?
Start out working with your finances. There is no point in looking at different houses if you don’t know whether or not you are going to be approved for finance. The banks will look for job stability and what state your finances are in. Review your income, assets and all your existing debts along with your fortnightly expenses.
You can check with the online calculators about how much you would need to pay back on a certain amount which can help you get an idea of what you are up for. Add that amount into all your other expenses then work out whether you would be facing hardship or whether you could afford the loan and other costs.
Time to maximise your deposit
Most banks and financial lenders will require you to put down a deposit. Not all banks will ask the same amount for the deposit; it will be subject to the individual terms and conditions. Keep in mind that the more you deposit, the more you will save on interest down the track. The more significant amount you save for your deposit will mean a lesser amount that you will need to borrow, which will give you the result of less interest over time and a shorter loan term.
Take advantage of aids and grants
There are many programs out there that are available to the first home buyers. Do your research and apply for what you can. There is the first homeowner’s grant which is a common grant getting handed out but is subject to approval on your income.
Don’t always assume the building is more expensive
If you are dreaming of a brand new home, don’t be too quick to jump to the conclusion that it is out of your price range. Many homes are suited for first home buyers that are very affordable. New house and land packages can be bundled together to suit your budget. New homes are becoming more affordable than ever. Quite often, the high price comes into how much land you get with it and all the extras that people add-in. For your first home, you don’t need to have the best of everything just choose standard items, to begin with, they can always be changed to something different down the track.
It can be hard to know what will fit into your budget and whether you can afford to build that little bit bigger, add the extra bedroom or get a bigger backyard.
A financial broker is the best person to speak to that can help you to determine what loan is safest for your individual needs. Brokers will also find the best deal around and with the lowest rate of interest. Some banks may approve of you where others won’t. Your broker can negotiate deals with the lenders to get you your first home.