Home ownership – make the dream a reality!
If you are a potential first home buyer (FHB), trading up to a larger home or investing you may be feeling disheartened by the doom and gloom in the media as to increasing prices and home loan affordability.
Buying property takes preparation and planning – sometimes for years. So what can you do NOW to help you buy a home in the future?
- Research the market NOW and develop a plan to achieve your goal
- Complete a realistic budget to help you work hard at saving a deposit
- Pay your bills on time – a good credit rating is important
- Eliminate or reduce credit card and personal loan debt
Buying your first home is an exciting time. It can also seem complex and confusing. So what other steps will you need to tick off your list when you leap into the world of property ownership?
- Your deposit – most FHBs find it difficult to save the full 20% deposit, other options may be available. Ask us how!
- First Home Owner Grant (FHOG) – assistance varies state to state and at this stage, the current NSW scheme offers stamp duty concessions and a $10,000 cash grant for eligible applicants – for a $450,000 purchase the FHOG benefits can add nearly $25,000 to your deposit!
- Know your borrowing capacity – call us for an obligation free appointment to assess your situation. This will avoid unnecessary shopping around and multiple enquiries with lenders. Let us do the hard yards for you. Also, be careful relying solely on the results from online calculators, as they do not always take lender requirements that may apply to your situation into account!
- Home loan application – next step is a pre-approval. As soon as you are ready, ask us to assist with a pre-approval which allows you to act quickly when you locate your dream home. Pre-approved loans give you 3 months to find a property knowing you can make an offer with confidence. Once a property that you want to buy is found, the time to full approval is shorter as the lender will only need to complete a valuation rather than process a full application. Can’t find a property in 3 months? Rollover is generally available for a second 3 month period.
- Finding a property – don’t rush in. Contact agents in your chosen suburbs and provide a wish list and price range. Do your research, Know your purchase limit and stick to it! Consider the location – is there risk of flood or bush fires – this will impact insurance cost and possibly a loan approval.
- Conveyancer or solicitor – you should choose a choose a solicitor or conveyancer at the same time you start looking for a property. This will ensure you will be ready to act and make an offer when that right property comes along.
Start the moving towards your dream today, contact us to find out how we can help you make your dream a reality.