Planning to buy your first home can be the most exciting time. However, there are many things that you need to consider and think about as first home buyers that your parents did not have to worry about.
Banks are warier
Following the banking royal commission, it is important for banks to include more items in the lending process. For example, scrutinising potential buyers spending habits was not mandatory – now it is part of the lending process. Since 2017 it has been that much harder for everyone to borrow as lenders have become far more responsible.
TIP: Make sure your saving is consistent and your debt is minimal or non-existent.
Uber Eats & Afterpay
We all love the convenience of getting our meals delivered and it is very easy to do this every other night. You should know that your lender may look right through all the transaction on your account and see a pattern of spending.
TIP: Calculate the approximate payments of your future home loan. If this is going to be $600 per week you should be saving this amount each week to demonstrate your ability to meet the requirements. And if you are renting and paying $450 per week then you should be saving the other $150 each week.
Remember that Afterpay is a debt and an ongoing debt if you are a regular user of this facility. It is another expense that lenders are going to be closely reviewing when you apply for a loan. Debts include car loans, personal loans and Afterpay.
TIP: Remove any unnecessary subscriptions and regular payments and show that you are a frugal saver.
Buyers Market or Sellers Market
It is always best to buy low and sell high. Keep an eye on what the experts are saying about the market, do your own research. In a buyers market, you can often negotiate a good price for your property.
TIP: Remember that buying property is a longterm investment and buying in the right location at the right time can be amazing for your future.
You don’t have to stick with one of the big banks – shop around and get a deal that suits your circumstances. Visiting a mortgage broker is great for this as they can look at many different lenders to get the best deal for you.
Incentives – There are still first home buyer incentives available through the government, ask your lender about this.
When you are ready to purchase speak to Select Conveyancing.