Buying your very first home is a very exciting, yet overwhelming process. This is especially true if you’re thinking about borrowing money to finance the house you’ve chosen. First, you’ll need to know how you can apply for a home loan and how you can get it approved. You may also need to consider the grants you may be eligible for and the best places where you can buy an affordable house.
Bottom line, the home-buying process involves several steps you’re often not very familiar with. You’ll also encounter jargons you’ve never heard before.
For this reason, we’ll give you some tips on how you can confidently buy your very first home:
1) Look for a mortgage broker
A mortgage broker can help you find the right house loan that’s suitable to the type of situation you’re in. He can likewise show you how a home loan works and the best features it offers.
2) Consider your budget
It’s important that you think about a budget that you can work on and then stick to it. By doing it, you’ll get a better picture of the right home loan that suits your capability of paying.
3) Know your limit
While it’s always tempting to buy something that’s extraordinarily nice and beautiful, you should only buy something you can afford. Even if you’re convinced that you’ll soon get a high-paying job, only stick to your current budget. What if you don’t get promoted or get the huge money you’ve been expecting? Will you still be able to pay? If you say yes, you can take the risk.
4) Save, Save, Save
Saving a deposit will tell your potential lender that you’re disciplined financially. If you also have a huge deposit, you’re likely to get a larger equity with lesser interest.
5) Apply early for the First Home Owner Grant
As much as possible, apply for your home loan at the same time you’re applying for the First Home Owner Grant. By doing this, your grant application will be processed faster.
6) Get away from debt
Before applying for your first home loan, do yourself away from excessive debt. You might want to get rid of credit cards you don’t really need, pay down personal loans, or finish off your car payments early.
7) Be a skeptical buyer
Do not immediately believe to everything you’re told. You may do your own share of research about the house price or do your own inspection of the house.