Purchasing a house can be a daunting, complex and all out confusing exercise – and that is just for people who’ve done it all before and know how to do it! The home buyer making their first foray into the world of property can rightfully feel totally adrift when confronted with their first buy. Don’t despair though, plenty have done it successfully before you!
If you’re considering purchasing your first home, you may feel like you’re on the edge of taking an extraordinary leap forward into the unknown. The thought of loan specialists, mortgage brokers, specialists and vendors, all with piles of houses, jargon and contracts, may have you thinking long and hard about whether it’s all worth it! Plus, on top of all that new stuff to learn, you need to head out there and find the right house!
Don’t worry – it’s not all bad.
To make it easier, we’ve broken it down into a couple of steps. That way you can take it in bite sized chunks and not worry about the next step until you’ve done the first one.
- Arrange your finances and make some plans about the home loan you’re intending to use.
- Get ready and organised. Really think about your plans in place for what’s to come. You can try doing something like making a list and schedule, and ticking things off as you reach them. This will keep you motivated.
- It’s critical to set your objectives in place before starting your first homebuyer venture, on the grounds that its not difficult to let something that could be accomplished effectively in five months take two years! Make yourself a time sensitive schedule and make sure you stick to it.
- Set yourself a due date for achieving your financial goals too – because working under a schedule will help you attain the objective of owning your first home.
- Determine the extent to which you can stand to be in debt. You need to work out just where you stand financially – and you have to know precisely what you can stand to pay back every month, and also what the forthright expenses are going to do to your financial situation.
- Figure out how much would you be able to pay back if you lost your job or something happened to you financially. Being able to meet the repayments means that you can meet the repayments no matter what the financial situation you find yourself in. It’s fundamental that you’re reasonable here, so calculate each and everything into the equation. Bear in mind the seemingly insignificant issues like, do you stop for coffees or a drink or two on your way home from work? Record it. Do you go out and have lunch one day a week? Do you always use $10 trying to win the lotto every week? These are the additional items you ought to consider to ensure that you’re going to get the right figures.
Remember that you need to be realistic. After all, it’s unlikely that you’re going to be super duper happy living on noodles under a bare bulb with ragged clothes on if all of your money is going to be going on your home loan. You need to consider that you do need to take holidays, and you do need to buy new clothes and shoes occasionally – it’s just not going to be every single day. Ultimately, home loans are more achievable than you might think and by starting to get your finances in order you’ll find that you’re more likely to be able to afford a mortgage and get started sooner rather than later.