Are you eager to buy your first home? Home ownership is an exciting opportunity, but a huge purchase such as this is definitely not something you should jump into without extensive careful planning. Let's take a look at some of the things you'll need to evaluate before you decide take the financial plunge.
Taking advantage of financial assistance
The prohibitive cost of real estate is a well-known problem that has been addressed by the government. First home buyer grants are specifically intended to help new home buyers who don't have substantial capital to purchase their first home. The eligibility guidelines for these grants vary by state, but there are some requirements that remain the same across the country.
- Buyers must be at least 18 years of age
- Couples are only eligible for one grant
- Buyers must be permanent residents of either Australia or New Zealand
- Only first-time buyers are eligible
- Some states require the home to be a new construction
- You must live in the home
Joint home ownership makes owning more affordable
Do you get along with a friend or family member so well that you'd be willing to share a home with them? There are home loans which allow each part-owner to borrow for just their segment of the mortgage. In the past, a huge hurdle to this living situation was the fact that each borrower had to sign on for the full home loan, leaving you or the other person responsible should one borrower renege on the loan.
Be prepared for all costs
You may think that the cost of a home only involves the price that is listed. However, there are many fees associated with the purchase of a home that you need to take into account before determining whether you can afford to buy.
Review the list below to make sure that you know what you're getting yourself into when you purchase a home. Some of the items are optional, but recommended (eg: services like inspections).
- Stamp duty
- Home inspections
- Property surveys
- Legal costs
- Loan origination fees
- Moving costs
Making the move
So you've assessed your situation and you think you're financially ready. In this case, it's time to get a mortgage pre-approval. This valuable tool gives you a better idea of how much you can afford and lets you act quickly when you're ready to put forward an offer on a home you like.
As we've outlined, buying your first home is a financial step that shouldn't be taken lightly. Use the tips mentioned above to make the process go smoothly. If you need further assistance, get in contact with a professional mortgage broker from Mortgage Choice and enjoy peace of mind and insightful guidance.