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Cracking the market: Tips for first home buyers
Even in today's tight market first time buyers can
still beat the rental trap - you've just got to be
smart about it! With the price of the average home soaring, interest rates on the rise and spiralling rentals cutting into after tax dollars most would-be home buyers feel like the odds are stacked against them when it comes to purchasing a home.
But despite some obstacles, buying your first home is still possible. All it takes is a little time, mortgage know-how and the commitment to managing your finances.
Tip #1: Budget
First up, get to grips with your monthly incomings and outgoings - if you can develop and stick to a budget you'll be best placed for factoring a home loan into your life. Consider if, and where you need to cut back to cater for mortgage repayments, and consider what impact this may have on your lifestyle.
Tip #2: Save
Aside from a deposit, home buyers are faced with a string of costs including legal fees, stamp duty and moving bills - just to name a few. Start a dedicated slush fund early so when it comes to settlement you won't be caught short.
Tip #3: Get educated
Knowledge is power, so the more you know about the type of loan you need, the better equipped you'll be to find the product for your situation. Consider how quickly you want to repay your mortgage, and whether you'd like to fix your interest rate or would like some flexibility. While information is easily available on the Internet, your mortgage broker is well positioned to answer any questions you may have.
Tip #4: Obtain a pre-approval
Having a pre-approved home loan enables you to realistically look for a property in your price range. It also gives you power to bid for a house or put in an offer as soon as you see it - rather than risk missing out on it should you delay.
Tip #5: Get a good team
Having a mortgage broker on hand is essential for finding the most appropriate mortgage for you. Your broker has access to most of the leading loans and can really track down the products that suit your circumstances - especially if affordability is an issue.
It's also important to seek sound legal advice, an understanding of the government grants and incentives as well as a feel for where interest rates are heading. With the aid of a Lending Hand Finance backed by other relevant professionals you'll be much better placed to make your first home buying experience a positive one.
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Did You Know?
We help first home buyers across Australia with home loan solutions.
Contact Lending Hand Finance on
1300 850 545 or
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