At Perth Townies we help many first-time home buyers through the buying process. We know that it’s hard to know exactly when the right time to buy your first home is and that the right time is actually different for everyone. To help, have a think about these first steps…
1. You’ve got an idea about where you want to be, not just living but in life
Home loans typically come with 30 to 40-year terms but this certainly doesn’t mean you have to commit to living in the same house for all that time. In fact, your first home is more than likely to be your stepping stone to your forever home, and it’ s important to plan where it is you want to be. Buying a home should be something you do when you have a plan for the next few years of your life.
2. Your credit looks pretty good
The term credit score can be a little scary for some, but having a healthy credit rating is important when you need to approach your financial institution. Your credit rating indicates your financial situation and sometimes even the smallest of things can impact it. For example, something as seemingly small as an unpaid phone bill may come back to haunt you when you go looking for a home loan.
There are a few things you can do to put yourself into a good credit position:
Pay down credit card balances
Pay student loans on time
Pay all of your bills on time, including rent, car payments, and utilities
Check your credit report for errors, and if there are any you can dispute it.
3. You’re working on your deposit
If you are a first home buyer, you will need to have some level of savings to help get you started. If you are a second or third home buyer, then you will hopefully have the advantage of being able to use the equity in your current home.
It’s important for you to talk with your mortgage broker or financial institute on what kind of deposition you will need for the home that you want.
4. You’ve had a chat with your mortgage broker
Before you start house hunting, you should meet with a mortgage broker. They will help you get pre-approved for a loan, which allows you to have a better idea of the houses you can afford. They will need some information from you which may include things like:
Pay slips
Bank statements
ID
5. Chat with your new home consultant
As a new home consultant we help you through all these things. We can answer any questions and ease any concerns you may have about the home buying process. Even if you are still trying to decide whether it is a good time for you to buy your first home, we can help put you on the right path.
Our commitment is to help ensure your first-time home buying process goes smoothly. If you think you are ready, or would like to chat further to figure out if you are, then call Aaron on 0424 537 437.
