10 Real-Estate Tips First-Time Home buyers Need to Know
Know Where Your Deposit is Coming From
Your deposit is likely going to be one of the largest sums of money you ever put towards one particular thing. It’s important to be clear on your options where your deposit is concerned. Are you contributing to it the old fashioned way – by putting money aside each week or month? Perhaps you have a family member that is willing to sign off as a guarantor. KiwiSaver recently announced that it would be making changes to the scheme to allow more first-time home buyers to put down a deposit.
Make Sure You’re Out of Debt
Remember, the bank won’t want to offer you a loan if you’re buried in debt. Where first-time homeowners are concerned, it’s always smart to pay off any outstanding debts you may have to show lenders you’re responsible with money and avoid any trouble later on. Student debt is normally the only type of debt the bank is willing to accept when offering loans to first-time home buyers.
Secure Pre-Approval Before Going on the Hunt
Imagine falling in love with a property, only to have your dreams dashed because your offer was outdone while you were waiting for pre-approval on your loan. It’s always wise to secure pre-approval on your loan before going on the hunt for your first home. The housing market moves fast and the last thing you want is to be left behind because you weren’t prepared.
Know Your Limits
Interest rates are ever-changing, so it’s important to know your limits when it comes to your finances. Stay within your budget and don’t shoot for the top end of your pre-approved amount. Leaving room for change will save you some tears in the long-run.
View, View, View!
Don’t settle on the first home you see – view as many properties as possible. This will allow you to see what you can get with your budget and help you better weigh out your options when making a final decision.
Manage Your Expectations
Very rarely will your first home be your dream property. More often than not, it’s a stepping stone on the way to your dream house. Look for value and potential rather than something perfect – you can always make changes later.
Your Offer Should Be Conditional
Purchasing your first home is a huge commitment. Don’t rush into it without doing your due diligence. Put in a conditional offer and make sure to do the proper inspections on the property before fully committing.
Work Out a Budget and Stick to it
There are many ways to make a budget. How much will you be putting towards paying off your mortgage each week? How long will it take you to pay off your mortgage? Whichever way you choose, make a plan and stick to it.
Protect Yourself and Your Home
Now that you’re a homeowner it’s necessary to make sure your home is protected. Insurance can protect you against fire, flood and unemployment so don’t delay in getting it.
Buying your first home? We are here to help. Talk to Wallace and Stratton, the real estate professionals, for expert advice on the real estate industry and help with purchasing your first property.