Buying your first home is an incredible milestone to celebrate. It can be exhilarating, but it can be overwhelming as well. There are lots of challenges you might encounter when buying a home. And if it’s your first time buying a home, you might feel overwhelmed with the entire process, not knowing where to start.
For those first-time home buyers, don’t worry. Here are some tips that can help you get started with your home purchase.
Determine Your Budget
Buying a home is a huge deal, and it’s a decision that involves a large sum of money. It’s best to go over your finances to determine a reasonable budget for your home. Look at how much money you’ve saved for your deposit and consider how much you’ll be able to borrow.
It’s best to consult with a mortgage broker to help you with your budget. They can advise you on saving money for your deposit and help realign your expectations with what your budget can realistically get you.
Understand the Different Costs Involved In Buying a Home
There’s more to home buying financing than just saving for your deposit. There are additional costs that you should factor into your budget.
Do the research and know what additional costs you should expect when buying a home. This could include government fees, mortgage insurance, legal fees, and inspection costs.
Get Pre-Approval From a Bank
When you get a pre-approval from a bank, this means that you can buy up to a pre-approved amount. This can be really helpful for auctions or when you’re negotiating the price.
To get a bank’s pre-approval, lenders will have to check that your finances are in good standing. They will also determine whether you would have the ability to repay the loan based on your current financial situation. Once eligible, the bank would conditionally approve you for a loan even before you’ve found a house. There will be a certain amount of money you’ll be able to borrow, which is only valid for a certain fixed amount of time.
Seek Expert Advice
Buying your first home all on your own can be quite a daunting task. That said, you can always seek advice from experts to help make the process easier for you.
As we’ve mentioned, getting a mortgage broker’s help in budgeting can really help you understand your financial situation and expectations. It’s possible to try to navigate the process on your own, but you’ll often end up spending significantly more time than you should on the process and possibly end up making an avoidable mistake. It’s wise to seek financial advice from professionals for other aspects of your home purchase as well.
If you’ve got any questions about home loans and additional fees or need any advice to save money for your home, don’t hesitate to approach a financial expert to help you out.
Buying your first home is a significant investment that you shouldn’t take lightly. Understand the financial aspects of your home purchase and work towards a good financial standing to afford a deposit and bank pre-approval. The amount of money you’ll be spending might seem overwhelming at first, but with the help of a trusted financial advisor, you’ll be able to get through it and get the home you want.
If you’ve got more questions about first home buyer finance, you can trust FinanceCorp to make financing easier for you. We are a mortgage broker in Perth dedicated to matching the right home loan to our clients. All of the Finance Managers at FinanceCorp are fully qualified, trained, and experienced mortgage professionals who live and breathe finance. Contact us today to get started.