First Time Home Buyer Tips
There is a lot to consider when buying your first home. With all the information and competing home loans out there, it can be difficult to know where to start, and this can be extremely overwhelming for first home buyers. Here are four tips for first home buyers that will get you started on the right track.
4 Tips for First Home Buyers
Find Out if You Qualify for a Home Loan
The first step for any first home buyer is to find out whether you qualify for a home loan. You may have assumed that anyone can get a home loan, but this isn’t the case. There are plenty of eligibility tests online to see if you would likely be approved for a home loan, and you can also ask your local lenders or a mortgage broker if you prequalify.
Do Your Research
Once you have determined whether you qualify for a home loan or not, it’s time to dig into the research and find out what type of home loan is best for you. Find as much information as you can on as many home loans as possible and compare the pros and cons of each.
This may seem like a lot of research, but it’s important to do so that you can familiarise yourself with the types of home loans available and be able to properly assess what will fit your lifestyle and income.
Plan Your Budget
The next step is the big one, sorting out your budget. First, determine how much money you can put aside as a downpayment for your future home. This will determine how much money you can borrow. Once you have that number, figure out how much you can realistically spend on regular mortgage repayments. These two numbers combined will be what ultimately determines how much you can borrow, giving you a price range.
It’s important in this step to also consider any debts you may have and pay them off if you can. This will put you in a better overall position to be approved for a larger loan.
Read our blog on how to get approved for your first home loan.
Talk to a Mortgage Broker
Once you have done your research and have a clear budget in mind, it is time to discuss your options with a mortgage broker. Being able to confer with a professional is extremely helpful for first home buyers. Mortgage brokers know the market and industry inside and out, giving you the best advice possible when buying your own home.
The key to starting the process of buying a first home is to prepare. By researching your options and analysing your own budget you will give yourself a solid starting point to begin comparing home loans. To book a chat with an experienced mortgage broker today, click here.