How will I ever be able to buy my first home? Now that is a question that most young Australians dwell on. There’s no doubt about it, buying a home nowadays seems impossible for most millennials. Although it’s a challenging time for first home buyers, it doesn’t need to be as daunting as you may think. Follow these steps and you’ll be on track to making the big purchase!
1. Set realistic repayment goals
First, set realistic goals for yourself in terms of what you can afford to borrow. Start by looking at your monthly income and expenses including all of the little things such as coffees, work lunches or subscriptions. Decide on what you’re willing to give up in order to be able to afford a mortgage, it could be cutting down take out night or shopping money. Be realistic in looking at what you will be able to afford to pay on a monthly basis.
2. Find a Mortgage Loan
Once you have your goals set, it’s time to find a loan. Most people will go to their current bank without shopping around but this is a critical step. There are so many banks and lenders who are offering very similar products but each with their own set of unique terms and conditions.
In order to get the best deal, try consulting a Mortgage Broker to help you get the best deal. It could save you a lot of money in the long run! Your mortgage broker will also be able to help you through the approval process and assist you in making sure you are prepared for your interviews so that your approval process is as smooth as possible.
3. House Hunt
Now that you are approved for your home loan, it’s now time to start the fun part – house hunting! Look at the maximum and minimum house prices or any trends that exist within your chosen area. Once you have a list of homes on your wish list, you’re ready to start inspecting. Sometimes this can be a long process but don’t get disheartened as a first-time buyer, something will come your way.
4. Purchase Your New Home
If you do enough research, eventually you will find your perfect first home and be ready to make the big purchase. If you are uncertain about anything in your contract, seek advice from Phil Lambourne from APS Legal Services to ensure that you are happy with the agreement.
Buying your first home is a daunting process but with the right support, you will be confident in making the right decisions. If you are looking to purchase your first home, chat to one of our mortgage brokers to hear about our FREE mortgage broking service. Click here for more information.