1. Save as much deposit as you can
The more deposit you can save, the more you’ll be able to afford to borrow to buy your dream home. You’ll find it easier to save if you prepare a budget of your monthly income and expenses. Eliminate or reduce and non-essential expenses to help you save money.
Once you have prepared your budget, it’s important to stick to it. Getting into this disciplined will also help you to make your home loan repayments once your home loan is approved.
In addition to your own savings, if you’re eligible you can also take advantage of the following to help you with your deposit:
- the First Home Owner Grant,
- the First Home Loan Deposit Scheme,
- and the First Home Super Saver Scheme.
2. Get a pre-approval for your home loan
Getting a pre-approval for your home loan before you start looking will let you know what you can afford to buy. Having pre-approved finance in place will also put you in a strong negotiating position when you find a home that you like, and you want to make an offer on it.
3. Use the services of a mortgage broker
The Australian home loan market is highly competitive. There is a huge number of lenders and home loan products available. It’s important to understand that even small differences in home loan features, terms and conditions can make a big difference to how much you’ll repay over the life of your loan.
That makes it crucial to compare lenders and their home loan products. However, it can be time-consuming and confusing to try and do that yourself. Mortgage brokers specialise in sourcing home loans. They know the market and they can help save you time and money by finding a suitable home loan for your individual needs. They can also help you with your home loan application to give you the maximum chance of having it approved.
It’s important to remember the old saying that “you don’t get what you deserve, you get what you negotiate.” Mortgage brokers negotiate with lenders for a living. They may be able to negotiate a better home loan deal with a lender than you can yourself, especially if you’re not a confident or experience negotiator.
4. Thoroughly research the real estate market
It’s easier than ever before to research the real estate market online these days. Look for properties in good locations that you like and that are near your pre-approved budget. Make sure that you also you take advantage of open homes and inspections so that you’ll know a good deal when you see one.
Good locations for properties tend to have the following characteristics:
- close to shops, schools, entertainment and public transport facilities
- close to where you (and/or your partner) work
- and they are safe.
5. Make buying your home subject to satisfactory building and pest inspections
This is especially important if you’re buying an older home. Make sure you hire the services of independent inspectors.
6. Make sure you take out insurance as soon as you buy
Your home is likely to be the most valuable asset that you’ll ever own. Make sure that you take out an appropriate amount of home and contents insurance coverage to protect your investment.
How we can help
Taking out your first home loan is a big financial decision. At ARG Finance, our experienced team of mortgage brokers can help you to find the right home loan for your needs. We’ll take the time to understand your goals and financial circumstances before recommending an appropriate lender and home loan for you.
Contact us today to find out how we can help you to get your first home!