First Home Buyers - how to get into that home in 2018!
If you have been longing for your first home, then maybe 2018 is your year!!
Here are some tips to help you make the dream a reality.
Save the biggest deposit that you can: Saving a deposit helps in 2 ways: First it shows your potential lender that you can exercise financial discipline over a period of time, and secondly - the bigger the deposit the larger the equity you have in your property from the start, meaning you will pay less interest.
Plan your budget: There is nothing more important when buying your first home than planning a workable budget and sticking to it, as well as continuing with a revised edition once you have received those keys! Budgets can be tough, but give you a clear picture for the future and the kind of loan you can afford.
Consider a mortgage broker: A mortgage broker is a person who will help you find the right home loan for your situation. Since this is your first home loan, a broker can show you the ropes and explain the features/terms of each loan
Know your limitations: Whatever you do, don't buy what you can't afford, even if the bank/lender says yes!! It's easy to become emotional and convince yourself it will work and you will only have to struggle for "a couple of years" but what if something were to happen in the meantime, or that promotion never comes? It's good to be sensible and realistic about what you can and cannot afford.
Rid yourself of excess debt: Do not make the mistake of applying for your first home loan whilst you are carrying excessive debt. Do away with any credit cards you don't really need, finish off your car repayments and pay down any personal loans. Make your home loan a top priority.
Do your checks: Carry out building and pest inspections to ensure you are making a great decision in buying the property.
And lastly, enjoy the process! Buying your first home is a big step, and a massive milestone. Enjoy it - after all, you have worked hard for this so after you get those keys, sit back, don't get overwhelmed but enjoy what you have accomplished.