As a first-time homebuyer, you have a lot to learn. You need to understand how to find the best interest rates for your home loanin Australia, as well as understand the difference between fixed ratehome loans, down payments and homeowners insurance; including the ups and downs that comes part and parcel with homeownership.
How can you learn as much as possible in the shortest period of time? By starting here, with this handy guide that will explain the basics of homeownership.
Understanding the Process for Pre-Approval
One of the very first things you’ll want to learn about when you decide to purchase your first home is the pre-approval process. When you are pre-approved, that means your credit rating is acceptable and your employment history has been approved; basically, you are an upstanding citizen worthy of owning a home.
With each home that you place a bid on, expect the lender to run a credit check, which will show up on your report for the future. Here’s a tip as you go house-hunting: keep a copy of your pre-approval letter. That way, it shows the sellers that you are responsible, organised and a strong candidate for them to consider when taking a look at all the other bids.
Know How to House-Hunt
There are several things that you need to look out for when house-hunting. First, consider your own needs and requirements. Ask yourself the following questions:
- If you have children, are there good schools in the area?
- Do you need a robust public transport system to take you to work?
- How far away from the city is the home?
- Can you get a good interest rate for your home loan?
You should know the answer to all of these questions before you head out house-hunting.
Secondly, what is your budget? Can you afford to go slightly over budget? Furthermore, if you buy a home that needs a little bit of fixing up, do you have the money and time to focus on renovations?
Finally, are you aware of the taxes that you will have to pay, and do you qualify for any government grants? From stamp duty to the First Home Owner Grant, you need to be aware of these taxes and grants.
Should You Invest in a Real Estate Agent?
Investing in a real estate agent is a personal choice, but for many first-time homeowners, having an agent will help you navigate through the buying process. It can be a breath of fresh air and a much-needed asset!
There are many benefits a real estate agent can offer, from outlining the features of a property to keeping you ‘in the know’ with all the latest information about the properties you’re interested in. Just make sure that you find a reputable agent – ask for references and do your research online beforehand.
Starting out in the housing market can be a little intimidating, but with this guide in hand, you should be able to find the home of your dreams.