Making your first move into property

By the resi financial blog team, 20 August 2013

What to know before buying your first house

The task of buying your very first home can be both an exciting and scary time. Although many of us have watched our friends and family go through the process of purchasing property, buying your own home is a dramatically different experience because it’s your own hard earned money going towards the single biggest commitment of your life.

The steps to buying your first home aren’t difficult but, to make sure you buy the right home for you and secure the best loan for your needs, you need to know your stuff.

Budget

Before you begin your search for your first home, it’s of paramount importance that you find out how much you can borrow and how much you can afford!

A quick way to work this out is to use an online calculator where you can enter in your ingoings and outgoings.

To determine how much you can afford to pay, it may be beneficial to create a comprehensive budget. Doing this will enable you to see exactly how much you are spending each week, and how much you are able to save.

You will also need to take into consideration any government concessions and assistance you may be eligible for. Your lender will have that information handy so don’t be afraid to ask questions.

Location

Location and budget go hand in hand - how much you can afford to spend on a property will greatly influence the type and location of the house you will be buying.

For this reason, it’s a good idea to keep an eye on property trends such as median house values and prices. These can fluctuate at times throughout the year, and can be affected by factors such as housing supply and population trends.

It usually takes anywhere between 30 days and 90 days (depending on the state you are in) from the time your offer to buy a property is accepted, to the day the keys are handed over. Have your home loan pre-approved before you start your search and make an offer, to maximise your chances of success when the right property comes along.

Categories: Home Loans