Tips for First Home Buyers

Even in today’s tight market first time buyers can still beat the rental trap – you have just got to be smart about it!
With the price of the average home soaring, interest rates on the rise and spiralling rentals cutting in to after tax dollars most would-be home buyers feel like the odds are stacked against them when it comes to purchasing a home. 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 will be best placed for factoring a home loan into your life. Consider if, and where you need to cut back to cater for mortgage payments, 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 will not 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 will be to find the product for your situation. Consider how quickly you want to repay your mortgage, and whether you would like to fix your interest rate or whether you would like some flexibility. While information is available easily on the Internet – we are 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 o 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. We have access to most of the leading loans and can easily track down the products that suit your circumstances – especially if affordability is an issue. It is 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 mortgage broker backed by other relevant professionals you will be better placed to make your first home buying experience a positive one.