7 Tips Every First Home Buyer Needs to Know
Buying your first property can be quite an overwhelming experience. Quite often, first home buyers are uncertain in applying and getting approved for a home loan, which grants they are entitled to and where exactly they should buy. Also, the home buying process is filled with steps you probably never knew existed.
To make buying your first home a little easier, here are seven crucial tips.
Plan Your Budget
Before buying your first home, plan a workable budget and commit to it. Also, revise your budget and stick to it once you have the keys to your first home. By sticking to a budget, you’ll have a clear idea of the home loan you can afford.
Check Your Credit Score
For first home buyers, a good credit score is essential when applying for a loan. Simply check your credit score online, and scour it for mistakes, unpaid accounts or collection accounts.
The lower your credit utilisation rate, the higher your score. First home buyers should have a lot of credit available, with less than a third of it used.
Know Your Limitations
Don’t buy what you can’t afford. When drawing up your budget, ensure you leave breathing room for emergencies, like medical bills or sudden job loss. Remember, if the property you choose exceeds your budget, you won’t have the benefit of the First Home Buyers’ Grant the second time around.
Apply for the First Home Buyers’ Grant
Only available until December 31st, 2017; you only have a couple of weeks left to take advantage of the Government’s generous first home buyers’ incentives.
Ensure You Receive All You Are Entitled To
Various states and territory governments also offer generous grants for first home buyers. Most states also provide concessions on stamp duty costs. Ensure you know every financial incentive available in the area you’re planning to buy.
Rid Yourself of Excess Debt
When applying for your home loan, ensure you’re not carrying excess debt. Be ruthless and get rid of unneeded credit cards and finalise car and personal loan repayments. This way, your home loan is your top priority.
Be a Cynical Buyer
Don’t believe everything you’re told. When you’ve found your perfect house, carry through building and pest inspections, and find out home values in the area. Also, to ensure you’re buying the home that’s just right for you, consider employing a buyer’s agent.
For even more tips on buying your first property, please contact the friendly team at No Deposit First Homes today.