According to the property experts, first home buyers are the driving force behind the current property construction boom. Access to the first home buyer grants and affordable interest rates make it possible for many Aussies to stop renting and start owning their dream home in Adelaide.
Due to the complexities of applying for a home loan and First Home Buyer Grants, it is easy for anyone to make a mistake. And, if you are a first home buyer, then a small error can snowball into a big disaster.
Here is our 11 top tips for First Home Buyers who want to successfully secure their first property.
Budgeting For The Property Purchase And Home Loan Payments
1. Pre-Approval Is Mandatory
When you are in the first home buyer market, getting a pre-approval will open many doors. The pre-approval letter shows the real estate agent that you are serious about a purchase.
2. Leverage The First Home Buyer Grants
SA’s First Home Owner Grants and HomeBuilder Grants can help you get up to $30,000 in contributions and bonuses. However, time is of the essence as there are only a few days left to get help with these bonus packages.
ACT FAST! The HomeBuilder Grants are about to close (the deadline is Wednesday the 31st March 2021)
If you want to learn more about the grants and review your eligibility, sign up for an obligation free phone chat with one of our experts.
3. Include Room In Your Budget For Additional Expenses
Set a budget equivalent to 10% or 15% of the monthly mortgage payments for future repairs and improvements so that you don’t strain yourself when such costs occur.
First Home Buyer Mistakes With Regards To Credit
4. Do Not Finance A New Vehicle
It is advisable not to apply for any other loans when you are in the process of buying a home for two primary reasons:
- You will be in more debt.
- Vehicle financing institutions may run a credit check slightly lowering your credit score.
When these two factors are combined, issues may arise resulting in the home loan underwriter denying your loan.
5. Do Not Change Jobs
The home loan pre-approval process emphasises stability. Generally, banks prefer applicants who have stayed in the same job for two years or more, over those who have switched jobs every few months.
We always advise our clients to stick with their current job until they have completed their home loan application and got it approved.
6. Keep A Close Eye On Your Credit Cards
Banks will check your borrowing capacity while preparing your home loan credit file. Hence, it is always a bad idea to add new debts when purchasing your first home.
Bottom Line: During the home loan process, do not max out any credit cards and avoid making new purchases on your credit cards if possible.
Do Not Let Your Emotions Influence Your Decision
7. Don’t Buy To Impress
Some people want to impress their siblings or parents, leading them to purchase a home that is either too big for their requirements or too expensive.
You need to realise that buying your first home is an achievement in and of itself. Buy a house that you can afford and that can fit your lifestyle.
8. Think Rationally
It is easy to get emotional with the purchase of your first home in Adelaide. Decide on the right location for you, features you need and your interests – let these factors guide your decision as this will be one of the biggest purchases you will ever make.
Researching The Home And Surrounding Market
9. Getting A Home Inspection
We always advise our clients to arrange a home inspection, whether they are buying their first home or looking into an investment property. It will help you avoid a home riddled with problems or confirm that you have chosen the right property.
10. Ask About Future Improvement Plans For The General Area
While discussing with agents, always mention the overall plans for the area. If there are plans for a new hospital, shopping centre, school or any other significant project, it could likely bring you more equity in the long run.
11. Avoid Trying To Purchase The Most Expensive House On The Block
Investing in the most expensive property on the block as your first home is never advisable for two reasons.
- Firstly, it will not be easy to sell.
- Secondly, your home may not appreciate in value as quickly as other houses in your area since it is already quite expensive.
Home Buying Guidance At Every Step Of The Process
We have been helping first home buyers in Adelaide for more than a decade. Whether you are confused about block selection, grants qualification criteria or your mortgage application, we can assist you at every step of the process.
Let’s connect and help you move towards owning your own home sooner!