7 Smart Tips for First-Time Home BuyersNetplanet Support
Are you planning to buy a home for the first time?
Many people today are buying a house early in their life. It frees them from the rental woes and provides a sense of stability.
Further, having your own house gives you much needed mental peace.
However, buying a house comes with several daunting tasks. From paperwork to picking the right home location, there’s a lot that needs to be taken care of.
To be sure that you are making the right investment, you must be well informed. In this blog, we will discuss a few smart tips for first time home buyers. Let’s begin.
Smart Tips for First-Time Home Buyers
1. Get everything organised
From home loan approval to the buyer grant application, you need many documents throughout the buying process.
So it is apt to organise your document file before you go on a property search. Check for pay slips, tax papers, bank statements, share documents, copies of birth certificate, citizen proof and so on.
Also, check if you need to get any of these documents attested. This will help you avoid any last minute preparations when you have a good offer on your hands.
2. Keep your wish-list ready
Note down everything you want. Noting down everything gives clarity on your choice. It gives you a direction to start with your search. Also, you get clarity on the type of property you want is in your budget or not. So that you can revise your wish- list.
3. Hire a trusted mortgage lender
Find a mortgage lender who is patient enough to guide you through the process. Deal with someone who explains the unfamiliar terms and help to secure your first mortgage. It will boost confidence in you to make a purchase decision.
The best way to find a trusted mortgage lender is to get recommendations. Ask for recommendations from your friends and family who have experience in buying homes. Let your lender know you are interested in purchasing your first home. Choose a lender with a heart of a teacher.
4. Set a budget considering variables other than the selling price
Remember, you will also have to pay for maintenance and capital repairs. Additionally, property taxes, homeowners insurance, your monthly debt, such as credit card debt, are few expenses that must be considered.
It is vital to carry out a pre-purchase building inspection before you lay on any deposit.
It may increase your overall cost or delay the buying process; but it is not a section to skip.
Through a pre-purchase building inspection, you can detect decayed timber, potential mould, leaking pipework, drainage issues, unstable foundations, general wear and tear, and other possible structural issues. It helps you detect faulty issues in the home that you cannot detect without professional skills and tools.
The building inspection professional can also give you an estimated cost of the repairs. Some inspection companies also offer pest inspection services, which is essential. Make sure the building/ timber pest inspector inspects every part of the house, i.e. the roof and sub floor area (as per the Australian standard AS4349.1-2007 and AS 4349.3 2010 Inspection of buildings Part 3 respectively).
The pre-purchase building inspections will save you from unexpected faults in your home after the purchase. Also, go for progressive inspections of during the construction of a new home also the need for new home building inspections Sydney wide.
6. Stick to your budget
Do not purchase a home spending outside your comfort zone to beat the offer of another buyer. The lender may offer you a loan that is out of your affordability, and you get into it so that you do not miss a great offer. But this is not a wise step to take. It may give you financial stress down the road. So set a price considering your budget, with possible interest rates increasing and stick to it.
Study the local market and negotiate with the seller accordingly.
You can negotiate and save your money in various ways. Ask the vendor to lower the sale price to compensate for the repair cost. It is advisable to have the repairs carried out yourself, so you know the work is done to your standard with your preferred trades people, which may also include warranties (which are often not transferable).
It may be hard to negotiate when there are more buyers of the home. But it is worth trying. You can also consult and strategise with your real estate agent to negotiate as much as possible, with a building and timber pest report as a negotiating tool.
Buying a home is one of the biggest decisions of a person’s life. Usually, it is the largest transaction one ever makes. And it is an even more important and difficult decision when it is your first home. So be patient and careful, do not make any wrong decision by being emotional and impatient.
At Doric Property Inspections we understand how overwhelming it is for you to purchase your first home so we do property inspections and talk you through the report to help you make the right decision.