First Home Buyers Checklist
Here is a list of things that you need to take into consideration whenever you purchase your first home.
Purchasing your first home can be memorably significant milestone for any Australian. Just like a lot of people's best achievements in life, you can get there if you think about it carefully and plan strategically.
According to statistics, it would take an Australian couple with average income almost half a decade before they can save for their first home's deposit in one of the country's capital cities.
In case you want to consider placing some money down for your dream house, the following are the essential factors that you will have to consider:
1. Check if your credit report has black marks
The credit report provides the details of your history in repayment. This may affect anyone's ability to become approved for a home loan especially if there were financial issues that are highlighted from the past. This is why it would pay if you have control of your debt.
Every lender will have your file on credit assessed against the policies that they have. There may be some instances where some will have your application approved while the others have the process delayed or eventually reject it. Despite this being discouraging, just hang in there. In case you plan to send an application for a loan soon, it would be great to have a conversation with your financial adviser and have your budget reviewed.
Be aware of your personal report on credit's details as this can save you from any surprises in case you want to send a loan application.
2. Know the amount of money that you possess
In Australia, a lot of the loan terms are usually from 25 to 30 years. Since it may be likely for mortgage to be among the biggest debts that you may ever take on, it is vital to have your financial goals prioritized. You also need to figure out where in this list would home purchase rank.
A significant part of this would be the property's price as this can often determine the amount of deposit that you will be needing. Because of this, it would be worth it if you can figure out how much you will be able to realistically afford before you can start looking.
In case your family plans to assist you when it comes to the finances, it would be great if you can have an in-depth conversation with them so you can discuss how they are planning to provide contribution. Always remember that there may be tax implications, benefits, and risks whenever they give financial assistance.
However, in case you have a partner that wants to buy the property with you, it's vital to become upfront when it comes to your financial plans and history.
3. Ensure that the locations that you are checking out can stack up
People may say that location can be everything especially when it comes to making a decision that is financially smart for your the home that you buy. In order to provide assistance in buying the home that you want and with the right price, the following are the things that you need to take into consideration:
- the price of the properties in the suburbs that you want to consider
- the distance that you are willing to reside from work, family, and friends
- the presence of local amenities like transport, shops, and schools including off-street parking
- the need for renovation and if you there are extra funds for this that you have
- the potential for growth in the price of the suburbs that you are considering
- the area's proposed developments that could create and impact on the home's value
- the way the local job market fares in case you are moving to a far place
- the rate of crime in the areas that you are keen on
In case you would need assistance to gather some of the data, we recommend that you try to check out online real estate companies or talk to a real estate agent that is working within the vicinity. Different features may surely be appealing for various individuals when it comes to searching for a home where they can reside. Because of this, you need to take into consideration the things that can work for you.
Ozbroker Plus is a mortgage broker platform that began in 2017 by several passionate mortgage-brokers with strong IT backgrounds. We believe that digital banking and other online services are capable of reshaping the process in mortgage application. Because of this, we strive to make the online loan application easier to understand and the progress as smooth as possible. Contact us for more information