16 Aug First Time Home Buying: Your Questions Answered
The process to purchase your first home could be tedious and overwhelming. But with the right help, it doesn’t have to be complicated.
People buy property for several reasons—a young professional wanting to exercise living independently, a couple who are recently married, or a growing family wishing to move to a bigger house. Whatever it might be, essentially, it could be summed up with the following reasons:
- Security – It could be regarded as psychological security and financial security as you will be able to build equity over the long term because of your monthly mortgage payment.
- Investment – It can be a potential investment because of the potential increase in the price of the real estate.
- Interest rates – interest rates can rise and may increase. So, homebuyers can take advantage of the low interest rates.
Now that your reason for buying a house is established, what exactly are the next steps?
- Save for a deposit
How much do you exactly need for a deposit? Essentially, the more money you put down upfront, the less you’ll have to borrow. The ideal amount you’ll need to save is 20% of the property price, plus a bit more to cover the fees or extra costs such as stamp duty. Soul Finance Group also has access to a lender that requires 2% deposit if you qualify with them.
- Secure a loan
If you have a finance broker helping you out, securing a loan will be a breeze. For your convenience, here are the list of document requirements. For the complete home loan process, check it out here.
- Look for a property
Familiarise yourself in the area or consult a real estate agent to guide you in choosing the best property for your lifestyle and budget. Also, you may choose to build– Soul Finance Group has access to reputable builder that can help you find land and design your first home.
After negotiations on the purchase price, you need to negotiate a settlement period. After paying the property price in full on the day of settlement, it is all yours!
Looking for ways to save for a home deposit? Learn to analyse your situation first by monitoring your budget. Spending Tracker is an app where it helps you keep track of your expenses. Manage your debts by paying off your credit cards as this helps you increase your borrowing power. Consider consolidating your debts to eliminate multiple payments and interest rates. If you wish to know how much you can potentially borrow, check online with our calculator.
Want to know more? Schedule a no obligation consultation today with Kirsten. Call 0408 081 082.
Credit Representative Number 486927 is authorised under Australian Credit Licence 389328.
This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.