6 Things to Consider Before Buying Your First Home

Are you thinking about buying your first home, but aren’t sure where to begin? Before you jump in at the deep end, take a bit of time to be sure you have all your bases covered.

Here is a quick guide to making the first home buying process a little easier:

Understand your costs

It’s common for many first home buyers to look closely at the purchase price of a property they want to buy and then calculate how much deposit they need to save. However, there are also a range of other costs associated with buying a property that you will need to take into account. These can include:

Check your borrowing capacity

The amount of money you can borrow may vary between banks. They all have their own policies and lending criteria to calculate the maximum amount you can borrow, so it pays to discuss your options with a good mortgage broker.

When you have a clearer understanding of how much you can borrow, you’re in a better position to work out how much deposit you need to save and what your approximate fees and costs will be on your estimated purchase price. You’ll also know roughly how much you’ll pay on your loan repayments, so you can start putting together your budget.

Work out your deposit amount

Once you know how much you can borrow, you can determine how much you need to save to cover your deposit amount. You may also need to add additional funds to your total deposit amount to cover any other costs and fees associated with buying your first home.

Create a budget

When you have a clear idea of how much deposit you need to save, it’s time to get your savings plan together. Spend a bit of time working out your budget. Make a list of your income and all of your expenses. Then work out how much you can comfortably afford to save each pay once your bills and living expenses are paid for.

Start saving

If you haven’t already, shop around for a savings account that pays you interest on your balance. There are plenty of different savings accounts available, so choose one that suits your personal situation and start putting money away regularly.

Apply for pre-approval

Before you head out house hunting, take the time to apply for a pre-approval from your chosen bank. The bank will assess your income and expenses and issue a conditional approval that lets you shop with a bit more confidence for your first home.

We know with so many options available that choosing a home loan can be daunting. When the time comes, don’t feel like you have to do it on your own.

Call Nieuvision today 1300 832 554 and ask how we can help make the first home buying process smoother for you.

Kym Russell
Finance & Property Consultant

– – – – – –

Disclaimer: We recommend that you seek independent financial and taxation advice before acting on any information in our articles and newsletters. They contain general information only and have been prepared without taking into account your personal objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances. Your full financial situation will need to be reviewed prior to acceptance of any offer or product. Interest rates are subject to change without notice. Lenders terms, conditions, fees & charges apply.