With housing prices so high, it is easy to wonder if you will ever get on the property ladder as a first-time buyer. But it is completely possible to do it if you take the right steps.
Save Those Dollars
This step should come as no surprise. If you want to buy a house then you will need to have the money for a deposit saved. That means fewer overseas holidays, less eating out, and no expensive gadgets. Also, ditch the credit card. It is too easy to clock up debt when you have credit just sitting there.
When you go to the bank to apply for a mortgage you will need to have a good credit rating. Credit cards, hire purchases and personal loans can all affect your credit rating if you have not managed them well.
Research Funding Options
You may find that you have extra funding available to you from your government or local financial institutions. Research first home grants or other available options before sinking every dollar you have into your first home.
Talk To Your Bank
It is important to know just how much you have in your budget when you go to buy your first home. So have a discussion with your bank to see how much they will lend you. Try to get pre-approved for the funds that you want to borrow so you know exactly which houses you can afford. It also helps to make the final buying process as simple as possible.
Know Your Must-Haves
These are the essential elements that you need in a home. Such as being in a certain school zone or close to work, a minimum number of bedrooms, bathrooms and garaging, and proximity to transport options and amenities. Your must-haves are different to all the things you might want, so be very clear on the essentials.
Compromising Is OK
It is very rare that you will be able to buy your forever home first up. So be prepared to compromise on the things that don’t matter. You can always build a fence, undertake renovations, or change paint colours later down the track.
Buying the worst house on the best street may mean that you can get into the area that you want at a price you can afford. Renovating is commonplace now, so even if you don’t have the skills to do it yourself, there will be plenty of companies out there that can assist.
Team Of Experts
Make sure you assemble a team to help you out. One of the most important people on your team is your realtor, as they will have insider knowledge on properties that are soon coming to the market. They may be able to give you advanced notice of upcoming properties.
Do Your Due Diligence
Before finalising anything on a property it is important to do your due diligence. Get a lawyer to look over any documentation, have a professional inspector provide a report on your home to check it is sound, and make sure you check over every inch of the house to see that you are happy with your purchase. Definitely don’t rush the decision!
Know what to expect in the process. Do your research so that you understand the sale and auction processes. Also, be prepared for disappointment. There are a lot of people out there trying to get on the property ladder, so you may not end up with the first house you place an offer on.