Buying your first home? Top things you need to know

By the resi financial blog team, 08 August 2014

Buying your first home? Top things you need to know

When you're a first home buyer, the idea of purchasing a property can seem a little daunting. After all, you've never done this before and with the sheer size of this investment, it's important to make sure you cover all your bases.

There are so many things to think about in preparation for your move into the property market that you'd be forgiven for feeling slightly overwhelmed. Simultaneously exciting and terrifying, preparing for purchasing real estate should be a thorough affair. 

Here is a checklist of tasks to look into before purchasing property in Australia. Follow these points to help streamline the buying experience and take the stress out of the process.

Do your research

Like everything in life, arming yourself with knowledge can make the experience less terrifying and easier to handle. There are many factors to consider, with the basics being covered in the resi First Home Buyer Navigator publication. This gives you a basic rundown about what you need to know when purchasing your first home, as well as providing you with commonly asked questions and scenarios. This should act as a go-to reference for any queries you may have about the first time buying process. 

One of the first things to learn is the difference between a fixed-rate and variable-rate home loan and which option is suitable for you. Finally, understanding if you're eligible for any government funding in your state - such as the First Home Owners Grant - is another avenue to investigate before committing to any mortgage options. Securing funding is a necessary step to get your foot in the property market, so get in contact with a financial expert to discuss the options available to you. 

Figure out how much you can borrow

Secondly, figuring out how much you can borrow through a home loan for your property endeavours is an essential part of the process. Your income, debts and expenses can all impact how much a lender is willing to give you. Factoring in a whole range of factors - including your annual income and major expenses - will affect how much a lender is willing to provide towards your purchase. Furthermore, the size of your deposit will also affect these figures. 

Utilise the resi Borrowing Power Calculator to gain an insight into how much you may be able to borrow to help achieve your property goals.

Prepare your paperwork

Proving you're able to make your mortgage repayments is essential to securing a home loan. Lenders need to see a number of documents when you're in the application stage, including pay slips for evidence of income and identification - such as a passport or drivers licence. After collecting these documents, the last thing to do is get in contact with a home loan provider to discuss the options available to you. 

If you'd like to find out more about how resi could help you with buying your first home, visit the website or call us today on 136 126.

Categories: Home Loans, Personal Finance