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Challenges of Buying Your First Home

September 25, 2020

Buying a home can be one of the most satisfying and stressful situations of your life. And getting prepared to buy your first home can be overwhelming and daunting at the same time. Saving a deposit, searching through hundreds of properties, visiting open inspections and auctions, etc. There just seems to be so much to do and think about.

And first home-buyers are facing a more difficult challenge than ever before, thanks to constantly rising property prices. Sometimes just knowing you’re not alone and where to look for advice is all the help you need.

So let us look at some things you should know and consider before buying your first house.

Affordability

It is the most important factor to consider while thinking about buying your first home. How much can you afford matters? So before you start looking at properties or even suburbs, make sure you know how much you can afford. That doesn’t mean the maximum you can borrow, it means the maximum you’re prepared to pay each month. Be realistic, not only about your current financial circumstances but also about future costs, to work out how much deposit and monthly mortgage payments you can afford.

Finance Management

The decision to buy your own first home would require you to carefully plan your finances. Saving for that hefty deposit is all about setting a goal early and sticking to it. This will involve considerable planning, researching of investment options, sacrificing non-essential expenses and actively saving to reach the goal sooner.

Research

There’s no such thing as being too informed when buying a new property. And putting time to research what kind of property or costs or loans is always a good thing. So take your time to learn as much as you can about the suburbs you have shortlisted. Look online, talk to real estate agents, go to property inspections and explore what's on offer. See if you are eligible for government grants and stamp duty concessions available to first home buyers.

Mortgage pre-approval

Consider getting mortgage pre-approval from a lender. Pre-approval lasts for 3–6 months and shows you're eligible to apply for a loan up to a certain amount. Most of the people do not realise this, but getting your mortgage approved should be a priority. It doesn't commit you to a loan. It lets you set an affordable price range, and tells sellers you're serious about buying.

And while you are doing your research, you can start the pre-approval process with the help of a mortgage broker. A 2016 First Home Buyers Australia (FHBA) survey revealed that almost 40 per cent of respondents thought mortgage brokers provided the most useful service when buying a home.

The right mortgage broker, can make securing your home loan a more straight forward task, offering you access to countless finance products and valuable advice and information every step of the way.

Reach out to us at Euphoria Loans and let us help you get the pre-approval for your dream home.

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