Buying your first home is an exciting but potentially unknown venture that can leave you feeling a little overwhelmed. With so many things to consider, one of the best things you could do is go back to the basics and give yourself a manageable to-do list. Here are four easy tips to ensuring a successful home purchase.
Save the biggest deposit you can
Saving the biggest deposit you can will help you in two ways: it will show potential lenders that you are capable of keeping track of finances and saving, it will also ensure that you will pay as little interest as possible. To save the largest deposit you can, sit down and work out a detailed budget. It may also be worth assessing your savings account and shopping around for better options that offer better interest.
Get rid of excess debt
Buying a home is possibly the biggest investment you will make in your life. So you don’t want to head into this venture with extra debt weighing you down. Your home loan needs to become your priority, and to do this effectively you will need to get rid of credit cards you don’t need, pay any personal loans and complete other payment plans such as for a car.
Apply for a First Home Owner Grant as soon as possible
Getting organised and sending off the application for a grant early is the best option. The best time is to apply at the same time that you are applying for your home loan. If they are an authorised agent, you are able to lodge the application with the lender themselves. Doing it this way can save a lot of time.
Usually the grant is processed by the time of settlement, or by the time your lender is paying the initial construction loan payment if building. Applicants have one year from the settlement or from the completion of building to apply for the First Home Owners Grant, however in some very special circumstances this is extended even further.
Know your limits
It can be all too easy to find that dream home and get swept up in all its features that we start pushing the boundaries on what we can actually afford. After weeks, or possibly months, of searching for the right property, we can start to make excuses and reason with ourselves that we can budget once we find a perfect home out of our range.
Don’t rely on job promotions that may not happen, or convince yourself the struggle will only be temporary. You could stand to lose it all if circumstances change and you won’t have the benefit of buyer incentives and First Home Owner Grants the next time around.
The information contained in this article is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Fairhaven Homes recommends that you consider whether it is appropriate for your circumstances and that you seek independent legal, financial, and taxation advice before acting on any information in this article.