First Home Buyer Guide

For most people, going through the process of buying your first home or getting your first home loan, is guaranteed to be a life changing experiences.

Like most things you’ve never done before, it’s a considerable amount to learn, but luckily there are a lot of people to help you if you know where to look and who to ask.

Be sure to use all available support options for you and source the appropriate professionals, including a good mortgage broker, accountant, financial planner and lawyer to ensure the process will move as smoothly as possible.

Here is the last 2 of 4 do’s and don’ts that all first home buyers must take advantage of. If you believe you have a sufficient deposit & are ready to move into the market to buy, then follow this guide and cover all bases.

Get Pre-Approval before moving ahead with your Home Loan Application

It’s not worth even thinking about scanning advertisements on Houses for sale, without the formal pre-approval of a home loan.

Ensure you have officially received your mortgage pre-approval, as this will give a clear indication as to how much you will be able to borrow.

Get the maximum capacity of recruitment to avoid the need for re-evaluation of your financial future.

This approval, provides you with a precise guide as to what you can borrow and gets you one step closer to bid at auctions &/or negotiate the price with the seller.

Get your Attorney to review the contact first

Make sure your attorney review your contract before signing. If you do not have a lawyer, you can check the register of attorneys, www.solicitorsregister.com.au and you can find a notary in your area.

Practice making repayments before you get a Mortgage

Once you know your borrowing capacity or the price range you intend to buy in, practice paying your mortgage by saving the required repayment amount each month. You may need to work out your repayment total, subtract your current rent and then save the remainder.

Deposit saver accounts

The Federal Government offers first home buyers deposit saving assistance via First Home Saver Accounts. These accounts provide a high-interest, lowtax savings environment with the additional benefit of government co-contributions of up to $875 per year when you deposit $1000 or more of your own money. There is a minimum savings term of four years, during which you must save at least $1000 per year to be eligible to remove your funds at the end.