Buying a home is a lifetime investment for any family. Apart from that, buying the first home involves a lot of sentimental value. Owning a new home is a celebration in itself and above that, all the firsts are always special that includes buying the first home as well. Now, when you are all set to start the process of buying the first home, you also need to know that the process of looking for a suitable home and finalizing the most suitable one needs a lot of patience. When you are buying a house for the first time and you have no idea about how the real estate industry works, you may be prone to making several amateur mistakes. But, a home is a huge investment and you cannot afford to make mistakes in the buying process. This is a real fix. So, to get you out of your confusion, I have enlisted here the common dos and don’ts of the house buying process.
The basic tip that you need to follow while buying the first home is to hire a quality mortgage broker that you can trust. The broker should be highly experienced in dealing with homes and should have all the knowledge of home loans and mortgage. After this, you can consider the below commonly made mistakes to ensure that you do not do the same while buy you set out to buy your dream home:
1.Not setting a budget or not sticking to it: buying the first home may be an experience filled with a lot of emotions, but letting those emotions push your budget limit farther away from your capability to afford can do you no good. You need to face your financial capacity and make a budget after an in-depth study of all the resources available to you. Also, check your debt score and see whether you are eligible to get a loan and if yes, what is the limit. After taking all these factors into consideration, you should set a strict budget limit that you should not cross under no circumstances.
2.Ignoring property inspection: When you look at a home that is visually appealing and nothing seems wrong about it, that is not an affirmation that the building is perfectly healthy with no defects. You have to hire a building inspector to inspect the house and point out if anything is wrong with the building. After a thorough inspection, you can re-negotiate the prices. Sometimes there are structural faults, water or pest damage in the houses that the previous owners conceal from the buyers, only to be discovered after the complete formalities of buying the house are done. So, to avoid this, a house inspection is a must before closing the deal.
3.Not applying for the first home owner grant beforehand: Most people are aware that the Australian Government offers a grant to people who are buying a home for the first time. This grant benefits a lot of people and to avail the benefits you need to apply for the grant. So, be certain to apply for it on the right time to ensure that you have the needed money for buying the house when you finalize one. The grant will be processed by the time of settlement or by the time your lender will be paying over the first scheduled construction loan payment if you are planning to build your home.
These are some easy and simple tricks for anyone to follow. Keep these three tips in mind to ensure that you have an enjoyable journey of buying the first home. Do your research, avoid making hasty decisions and keep an open mind and you are all set to become the owner of your dream home.