5 steps to avoid the most costly First Home Buying mistakes.
Buying your first home? It's an exciting adventure with endless possibilities. To help you navigate the process like a pro, we've put together the top five must-do's every first home buyer should know. These steps will not only help you wrap your head around the financial side, and ensure you're ready for every twist and turn.
1. Know your Numbers
Before you dive into house hunting, it's important to know how much you can borrow which depends on your income and expenses. Getting a handle on this will help you set a realistic budget so you don't fall for a place that's out of reach.
Why it matters: Knowing your borrowing limit keeps you grounded and focused on homes within your range, saving you time and disappointment.
2. Create a Detailed Budget
Your budget isn't just about the mortgage payment. Consider what monthly repayments you're comfortable with and what you're willing to cut back on if necessary. Think about upcoming expenses like holidays, events, or lifestyle changes (maybe a new pet or starting a family).
Why it matters: A solid budget helps you manage your money without feeling overwhelmed or caught off guard by surprise expenses.
3. Tap into Grants, Schemes & Waivers:
Australian state governments offer a lot of grants, schemes, and waivers for first-home buyers. These can seriously lower your costs, from the Government Guarantee Scheme to stamp duty concessions and state-specific programs.
Why it matters: Taking advantage of these opportunities saves you thousands and will increase what you can borrow.
4. Factor in Additional Costs:
The purchase price is just the beginning. Don't forget about extra costs like stamp duty, conveyancer fees, building and strata reports, and moving expenses. These can add up, so make sure they're included in your budget.
Why it matters: Being aware of these costs helps you avoid any nasty surprises and ensures you've got enough saved to cover everything.
5. Prepare Your Documentation:
For a smooth loan application process, get all your documents ready. This includes proof of identity, income evidence (including bonuses and commissions), bank statements, and details of any existing debts like credit cards, car loans or HECs
Why it matters: Speed is important, and having your documents organised speeds up the process from initial chat to lodged application.
By following these essential steps, you'll be ready to dive into the property market with added confidence, knowing mortgage brokers are here to support you every step of the way.
Could using a mortgage broker be your secret weapon?
Mortgage brokers work in your best interest, unlike banks, by focusing on finding the most competitive deals tailored to your unique financial situation. They guide you through the entire home loan process, offering expert advice and handling all the heavy lifting to ensure a smooth experience. Their services are typically free for you, as their fees are covered by the lender you choose. With access to over 60 lenders, mortgage brokers ensure you receive the most competitive loan options available. Their goal is to secure the best deal for you, saving you time, money, and stress. Additionally, many mortgage brokers have strong networks with buyers agents, real estate agents, and conveyancers, providing valuable pre-auction advice and support for peace of mind.
Want to learn more about how a mortgage broker could help you get a better deal and get into the market sooner?
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