First-time home buyer checklist

Buying a home for the first time can be overwhelming. It’s important to get all your tasks sorted so nothing falls through the cracks. To help you out, we’ve created this useful checklist for first-time home buyers. We’ve also listed helpful tips and tricks to help you make your property purchase a success. 

Budgeting and financing 

First and foremost, you need to get your finances in order. Here’s what you need to do before you start house hunting: 

Review your finances and credit score 

Before anything else, you need to see if you can afford to buy a home. Look at your savings, income, expenses, and debt. You need to make sure you have enough to make house payments without hurting your long-term finances. If you want to get a good deal on your mortgage, you need to make sure your credit score is in good shape. 

Set a budget and figure out a deposit 

Once reviewed your finances, you need to figure out a budget. Use a home loan borrowing power calculator to get an idea of how much you can afford. Don’t forget to include hidden costs of buying a home such as insurance, taxes, and the like. 

You should also think about how much you’ll be putting towards a deposit. Borrowers need to provide at least 20% of their desired property’s value to avoid paying Lenders Mortgage Insurance (LMI).

Research home loans 

There are many different kinds of home loans out there. Finding one that perfectly suits your needs is essential. The mortgage you choose can really make or break your home purchase. The best thing to do is do your research. Go online and see what home loans are out there. Or you can talk directly to a lending specialist to learn more about the home loans available to you.  

Apply for a pre-approved loan 

A pre-approved home loan is an agreement in principle by the lender to lend you a specific amount of money. Although this does not guarantee a home loan approval, it can give you a more concrete idea of how much you can borrow from a lender. Sellers may also take you more seriously while shopping around for a home with a pre-approved home loan in tow. 

Look at available First Home Owner Grants 

First-time homebuyers may be eligible for grants from the state or federal government. Look into the First Home Owner Grant (FHOG) or the First Home Super Saver Scheme (FHSS). You should also see if your state government offers any grants or schemes that help first-time home buyers. 

Finding the perfect home 

After you’ve sorted out your finances, it’s time for the exciting part—finding your perfect home! Here are a few things you can do to make house hunting easier: 

Understand your needs 

To quickly narrow down your options, you need to figure out what you need before you go house hunting. Do you have a growing family and need a forever home? Where do you want to live? How many bedrooms and bathrooms do you need? Answer these pertinent questions first or else you’ll feel overwhelmed with options. 

Create a list of non-negotiables 

During your home search, you need to know when to compromise and when to hold your ground. By creating a list of non-negotiables, you’ll eliminate all the properties that may seem good on paper but won’t meet your needs. This will not only save you time but also avoid the risk of falling in love with a property that isn’t right for you. 

Research different suburbs 

Location is everything when it comes to real estate. Not only will the suburb affect the price of the property, but it will also impact your lifestyle. When looking for properties, don’t forget to look up the neighbourhood and the amenities around the area. Get to know suburbs by getting a property report and looking up relevant data. 

Get a property report 

Once you’ve got a shortlist of properties, it’s time to do a deep dive into the houses. Get a free property report to learn more about your future home. Property reports typically include the estimated property value, market comparison, and property mapping. 

Negotiations and closing 

You’ve made an offer on the property that fits your budget and criteria. It’s time to close the deal but first, you need to do the following: 

Have a building and pest inspection 

If you’ve found the property you want to buy, it’s time to arrange a building and pest inspection. An official home inspection can reveal issues with the home that weren’t disclosed by the seller. You can negotiate with the seller to cover the cost of repairs or renegotiate the purchase price in line with the home inspector’s findings. 

Get an easement and boundaries report 

Knowing the property’s boundary lines and easements as easements, shown in an easement and boundaries report, can save you future headaches. 

Read the sale contract carefully 

Don’t get lost in all the excitement of buying your first home. Before signing anything, always read the fine print carefully. Talk with your conveyancer or real estate agent about the final steps of the home buying process. 

Start your home buying journey with loans.com.au! 

It all starts with a good home loan. If you’re looking for a loan with low rates and favourable terms, check out our range of home loans! Apply online or call our friendly lending specialists at 13 10 90. 

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