Buy your first home

1. Think about why you want to buy a home Do you want to live in it or will it be an investment property This can help determine the kind of loan you apply for and home you buy, depending on your short and long-term plans

2. Research potential properties and loans Knowing the market is crucial, so do some research on the areas you are targeting. There are some cool tools to help with this and we can share them with you. Once you are aware of what you are looking for and the approximate price, it is then a matter of looking at whether you have an adequate deposit or whether you need to involve a potential Guarantor. You don’t need a 20% deposit but being able to show a record of good saving habits will aid in getting your loan approved. If you can show you have saved 5% of the purchase price yourself then you are off to a great start. Don’t despair if you haven’t there are other options for newbies that have the “IT” factor.

Ask us to do some calculations and provide you with a printout of what your borrowing power is, what deposit (if any) is required and what your repayments will be. In this low interest rate world you will find your repayments may not be much more than the rent you are paying – nice! BUT lucky lenders aren’t irresponsible so we assess at higher rates just to be sure you can handle it… A bit of stress testing really, phew, that was sweaty 

3 Factor in other costs involved Depending on the property, there can be a number of additional costs. Lucky for you we do this everyday and so we will give you a very realistic simple to understand summary that bears it all upfront. (blush) This can include, but isn’t limited to, stamp duty, loan establishment fees, legal and conveyance services, utilities, property insurance, maintenance and *lenders mortgage insurance. What’s that you say? Insurance? Ah that’s not for you, but you get to pay it! Paying a little bit of Lenders Mortgage Insurance (LMI) can make your deposit go so so so much further so you actually get a choice of houses!
4 Think about your future Just because your current situation allows you to get a home loan, that doesn’t automatically guarantee that you will still be able to service it in five years’ time. Is there a possibility your role at work will change? Are you considering going back to study and reducing your working hours? Good thing so many of you are getting the big bucks though but best don’t max out your borrowing on two full time incomes…you know what I mean, ah-hem? 5 Get professional help We are your professional hub and can connect you to whoever you need during your property buying process. There are many experts in the industry and it is in your best interest to use them for tasks such as property checks, pest checks and any other legal queries. Going it alone can prove costly. Avoid nasty surprises down the track by getting the right people to do the appropriate checks for you from the beginning. Hey, back off Termites we are movin’ in!