To an average Australian, few things in life are as exciting as buying or building your first home. In the same breath, few things can be as taxing, confusing or frustrating as the very same process of home building or buying. But you can be well prepared and make a plan for buying your first home. Being prepared, doing research and taking action early in the process can help ensure that you can successfully buy your first home.
- Go See a Mortgage Broker First- They hunt down and compare home loan options pinpointing your strengths, weakness and best options. The moment the idea of buying a home crosses your mind the first time, make a preliminary appointment with a professional. With a professional, you can pinpoint where you stand and what actions would put you in the best place to receive and qualify for the loan for your first home. Whether you are in Melbourne, Sydney, Canberra or any other town, you can be sure to find a competent Mortgage Broker near you.
- Follow the Advice You Receive- During the aforementioned appointment with a local mortgage broker, you will likely receive advice on how to increase your chances for qualifying for a home loan and obtaining the financial backing you need to achieve your dream. This may include not switching jobs or fields during this process, saving a large down payment or taking steps to improve your credit or debt to income ratio.
- Pay Down Your Debts- Managing outstanding debts like personal and car loans will both free up extra cash in the long run and improve your credit history. The fewer items you pay out the better off you will be, there is no two ways about that in any situation. Paying down debts is especially important during this process because when applying for a home loan debt to income ratio is a deciding factor that is given a heavy weight.
- Start Saving the Down Payment Now- The larger the down payment you have at the time of your application the less you pay in interest in the long run and the more stable you appear to lenders.
- Research Grants- Put time in to researching the home buying grants you qualify for and be prepared to fill out the applications for the grants in your State. Home price caps for grant qualification change for state to state and even by region in some case. With a little extra research, you might find out that you qualify more than the base rate, potentially for up to $24,000. Even if this is not your first home, if it is your spouse’s then you could still qualify for such grants.
- Settle on a Home Budget- Look at all current expenses and weigh how much you can afford to pay towards a mortgage comfortably. There is no reason to put yourself in a situation where you are house rich and cash poor. It is a mistake all too commonly made.
Proper preparation can make a big difference in the success of your home owning for the life of your loan. Potentially, a few extra steps and a little extra time can save you thousands and even tens of thousands of dollars in the long run. Why not use these home building tips and be part of the many Australians already living the story?