Tips For First-Time Home Buyers
Buying a home can be exciting and intimidating, considerably so if you’re a first-time home buyer. Given that banks are reworking their lending criteria in this financial climate, the current interest rate looks set to remain stable at these prevailing low levels with house prices increasing, which makes it a good time for prospective first-time buyers to get into the property market.
It is therefore important for first-time buyers to get all their stuff in order before making a purchase offer as banks are far more likely to grant a home loan at a favourable interest rate if the buyer is able to offer a deposit. First-time home buyers must be aware of the following tips before starting the home buying process:
Check your credit rating
Every bank will do check your credit rating as the first point of call when assessing your home loan application. As a potential buyer, you should check your rating before you get started to avoid any adverse surprises or deal with any unresolved matters that could be pulling down your credit score and look for opportunities to improve your credit, by making sizeable efforts to reduce any outstanding debts.
Work out what you can afford
Work out what you can afford by analysing your income and expenses very. It’s important to consider that home ownership comes with additional expenses and responsibilities beyond merely paying a bond. You will need to repair and furnish your new home, and additional expenses always crop up. Before you start looking for your new home, you need to know what’s actually within your price range. Use this online calculator to determine how much you can safely afford to spend.
Looking at a house on sale? Read our blog on things to consider when looking at a house on sale.
Pick the right type of house and Learn about the location
By looking at the prices in the location you’re considering, you can work out if you can afford to purchase a house there. If not, the next best step is to try the neighbouring areas. Considering your daily work route, proximity to your support network – friends and family – proximity to good schools since they affect home value. Spend a bit of time driving around the neighbourhood both in the daytime and at night to get a general feeling for the place and people, traffic patterns as well as noise levels and security concerns.
Not interested in any of the houses currently available? Why not consider buying into a title development where no units have been built and your decisions are based on the developer’s blueprints or the builder’s plans that indicate what the property will look like when complete. We know this isn’t an easy decision to make, read our blog where we discuss the pros and cons of off-plan buying.
Inspect the property carefully
You might find a property that ticks all the boxes and, at first glance, may seem like a bargain. Focus! Don’t let your excitement about owning a new home prevent you from making the right decisions. You should comprehensively check or get professionals to check for cracks on the walls, water pressure issues, missing and damaged tiles, holes in the roof, electric wiring problems and any other issues that will need fixing or replacement.
Highly rated contractors who offer equally high-quality work come with a hefty price tag. Not identifying any underlying cosmetic and structural issues may leave you with the prospect of paying large sums to renovate the property. It is the buyers’ responsibility to acquaint themselves with the condition of the home, so make sure you’ve been through it thoroughly.
Consider the interest rate
It’s always worth calculating what the difference in your bond repayments would be should the rate fluctuate. There should always be room in your budget for upward growth especially if you buy when the interest rates are low.
At MMR Property, we are committed to making your real estate dreams a success and helping you find your new home. Contact us today and get the best advice on property developments near you. We look forward to hearing from you.