Buying your first home can be an exciting experience. However, it can also be a lengthy and complicated one. Buying your first home is also a huge financial decision, so it’s really important to be informed and aware of what the process is before you start on your journey to homeownership.
If you want to get onto the property ladder sometime in the not-too-distant future, make sure you check out the following guide that lists the 10 steps to buying your first home. You can never be too prepared!
- Start Researching Early
The sooner you start looking at what’s out there, the sooner you can get an idea of what you want and how much you’ll have to save in order to afford it. Learn about the best age to buy a home.
Ask yourself questions like which area you want to live in, what are the house prices like in that area and how will your first home fit in with your lifestyle.
You should also ask yourself whether you want to buy a pre-existing home or build one yourself. This will have an impact on whether you look at older homes or start looking for builders that offer house and land packages Perth.
- Work Out A Budget
Dreaming about living in your ideal home is fun, but at the end of the day it all comes down to money.
You will have to spend more to live in a master plan community than in a regular neighborhood since you will be living in a more sophisticated living space with more amenities.
In order to work out what you can realistically afford, you need to work out a budget. This means taking stock of all of your expenses and then setting that against your income.
This will determine how much you’ll be able to save for a deposit, and then how much you can afford in monthly mortgage payments. It’s also important to be aware of government schemes like the $10,000 first home owners grant in WA, as these can have an impact on your budget and savings plans.
- Get Your Homeloan Pre-Approved
Before you start looking around, it’s important to get your home loan pre-approved. The last thing you want is to find your ideal home, only to find that you’re unable to secure the finance you need to buy it.
Getting a home loan pre-approved can save you from a lot of stress, uncertainty and wasted time.
- Find A Good Real Estate Agent
Finding a good real estate agent can make a huge difference when you’re buying your first home.
Their knowledge of the process, negotiation skills and familiarity with the local housing market can be extremely valuable and make your life a lot easier.
- Shop Around & Make An Offer
While it can be tempting to want to make an offer on the first home you see, it’s really important to shop around and find a home that you love at a price that works for you.
It’s unrealistic to assume that you’ll get a first home that ticks all of your boxes, so shopping around and assessing different options can help to give you more of an idea of what’s important to you and where you’re willing to compromise. This is a huge decision, so it’s not something you want to rush!
Once you’ve found an option that works for you, then you can put in an offer.
- Get A Pre-Purchase Inspection
If you’re buying a pre-existing home, paying for a pre-purchase inspection could be one of the best investments you ever make.
These inspections check the property for any signs of structural damage or other defects that might need fixing. This information can have a huge impact on your decision to buy the home and can save you from being the disastrous position of buying a home that needs extensive work.
- Select A Loan With A Mortgage Broker
There are numerous housing loan products available, so working with an independent mortgage broker can help you identify the one that’s best for you.
- Sort Out The Paperwork
Buying a house is a significant financial and legal process, so it stands to reason that there is a lot of paperwork involved. This is where having a good real estate agent and mortgage broker on your side really comes in handy.
They can explain all of the contracts and documents you’ll have to sign and ensure that everything is sent to the right people on time.
- Close The Sale
Once all of the paperwork is in order, the final thing is to sign on the dotted line and close the sale. Once you and the seller have done this – and it has officially settled – the home will be yours!
- Celebrate & Move In
After successfully completing the home buying process for the first time, it’s important to celebrate this momentous occasion. You might want to break out a bottle of bubbly or head out for a nice meal with friends and family to mark the occasion.
Once the celebration is over, you’ll then move onto the task of actually moving into your new home and starting your life there.