In 2022, Australian first-time homeowners can become $131,000 richer as prices are currently soaring.
Buying your first home can feel overwhelming, which is why you should know the basics to streamline the process. But with so much information online, it’s difficult knowing where to start your research. Perhaps you’re currently in this position and you want tips to help you.
Sound like you? No worries; you’ve come to the right place. Here are five things every first-time home buyer should know.
1. Check Your Credit
Before you purchase a home, it’s important to check your credit. Make sure there are no errors and you’re not in your overdraft as it could impact your chances of getting a bank loan. If you’re not sure where to start, get a free copy of your credit score online for peace of mind.
2. Outline Your Budget
First-time buyers should also outline their budget as it will determine what they can get. A major mistake you can make is getting too invested in a property, only to realize you don’t have enough to make the purchase. And if you are planning to buy a home to fix up, make sure you set aside enough money for repairs or renovations.
Further, you must save for a down payment on your first property. As a general rule, you should have at least 20% as it will secure you a better mortgage loan.
But you mustn’t forget the additional closing costs. For instance, first-time buyers must pay attorney, appraisal, and pest inspection fees so make sure this aligns with your budget.
3. Decide Your Needs and Wants
You want to buy a house that aligns with your household’s needs and wants. For instance, there may be a specific number of bedrooms or you may want a yard for your little ones. Once you have an idea of what you want and can afford, it’ll be easier to find the perfect property.
4. Find Your Dream Home and Neighborhood
Before you purchase a house, take time researching different properties and neighborhoods. If you’ve got kids, you want somewhere that’s safe and close to schools. You should also visit the area during the night so you know what it’s like around the clock.
5. Work With a Real Estate Agent
You’ve figured out how to get a mortgage, so now you must find a reliable real estate agent. Find someone who has extensive experience in the industry and knows the area. Note, that you want a real estate agent to advise you on the current market so you make the right decision.
You should also check out this mortgage broker to help you find the house of your dreams.
Everything a First-Time Home Buyer Should Know
Every first-time home buyer should be prepared for the buying process, from outlining their budget to checking they have good credit. First-time buyers should also spend time researching different neighborhoods and work with a reliable real estate agent for advice. Good luck with your venture!
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