Planning to buy your first home can be exciting but it can be overwhelming as well.

Planning to buy your first home can be exciting but it can be overwhelming as well. There are many things involved, from getting your game face on when handling negotiations to refining your credit scores. You should also maximise your savings account and meet several requirements. All these things can be enough for you to throw your hands in the air and surrender to renting.

Here at Vie Financial, we want to help you get your hands on your dream home. This handy guide will provide you with an overview of how the process of first home buying goes from start to finish in Australia.

STEPS IN BUYING Your First House

The first few steps begin with proper planning. It cannot be overstated how important it is to be well-prepared as you hunt for your new home. The property market is vast and confusing. It would not matter if you have more than enough money to pay for the house. One thing that will truly matter is that you have set yourself on the right path to ensure a smooth and successful purchase.

The first few steps begin with proper planning

HERE ARE THINGS YOU NEED TO DO TO Get Ahead and Buy Your First Home:

Early preparation is to put aside money for the home deposit, which is considered one of the biggest obstacles in buying a house. Australian prices are getting more expensive, so even a 10% deposit could be equivalent to over $50,000.
To avoid struggling to pay for the deposit, save money. You can create a separate savings account where you will keep the cash for the impending payment.

You can enlist the help of your family and friends. Australia’s strong economy means that most of us have people who can assist us in reaching our goals, including financially.

Aside from them, you can have a guarantor who will sign onto the loan with you. This person will take on a portion of the repayment obligation. Be sure to inform the individual that a guarantor will be held responsible if ever you slip up with your repayments.

Financial mishaps can happen and they can ruin your chance in landing your first home. Get a free copy of your report through CreditSimple and other similar sites. You can also get a list of the reporting agencies from MoneySmart, an Australian Government and Australian Securities and Investments Commission initiative.

Your credit score can be anywhere from 0 to 1,200. Lenders will take a look at your number to find out whether they should loan you money or avoid you because you are a risky borrower.

Before you go ahead and hunt for your new home, you should first determine the repayments that you are most comfortable with. Banks would normally have their own formula in figuring out how much you can afford. They would often take the number of dependent children, your cars, and other living costs.

Irrespective of what lenders equate, your considerations are the ones that matter. Work out what you feel you can manage, along with your spending habits. List your monthly expenses without skipping a cent. You should not need to adjust your lifestyle in any way. You will soon see how much you can afford to pay for your home every month without getting into a financial disaster.

You already know that purchasing a home is expensive. However, most Australians do not even know what they will be paying for. It helps to anticipate the expenses that go with buying a house, which include:

  • Professional building inspections
  • Legal fees
  • General mortgage fees, such as loan establishment fees and mortgage insurance
  • Insurance, such as home and contents insurance
  • Owners Corporation Records Inspection or a strata Inspection Report if you will purchase a property on a community or strata title
  • Valuation fee
  • Land rates and utilities, such as sewage, gas, water, and electricity

You should also not forget about moving costs. Stamp duty tax may be required as well and the amount can vary depending on your state or territory. Use this calculator to find out the total government fees that you would owe.

A competitive loan can be hard to come by. You need to be educated on the different options you have. Additionally, you need to familiarise yourself with the interest rates and product features of each loan, such as redraw facilities.

Once you have found the right loan, you should make sure you get approved for it. When you get the approval, understand that it will not last forever. Typically, the loan will be valid for six to 12 months. If it has expired, you may need to reapply.

With everything in place, it is time to look for your first home. You can look at the real estate section in the newspaper or talk to real estate agents. Research is key here because you need to know the available options, along with their corresponding prices. The houses for sale vary in prices depending on several factors, including the area.

As a first-home buyer, you may not have any experience and knowledge in purchasing a property. Going online and looking for clues will not be enough. You need real people and it is why Vie Financial is here. Hiring a Vie broker benefits you in many ways.

Mortgage brokers are experts who can give you financial advice when you plan to buy your home. Our brokers will guide you through the complexities when you apply for a home loan. We can help you build the perfect application to ensure that your creditworthiness matches the lender and loan you want.

Vie brokers have studied how banks and lenders examine home loan applications. We can help you manoeuvre through the rigorous process, so you can get a pre-approval. Professional brokers will make sure your mortgage will work based on your needs.

Contact us today so you can buy your dream home as stress-free as possible.