- Buying your first home is an exciting experience, but it can also be a daunting one. There are so many things to think about: the area you want to live in; the size and type of home you want; First Home Owner Grant eligibility; and, of course, the price you’re willing to pay.Whether you can already picture your dream home or are still just trying to pick the right neighbourhood, with the right advice the process should be an enjoyable one. This easy-to-read guide will take you through all the steps to buying your first home, from getting your first home buyer finances in order to choosing a place to live and completing the sale, including:
- Pre-ApprovalPellentesque habitant morbi tristique senectus et netus et malesuada fames ac turpis egestas.Vestibulum tortor quam, feugiat vitae, ultricies eget, tempor sit amet, ante. Donec eu libero sit amet quam egestas semper. ean ultricies mi vitae est. Mauris placerat eleifend leo. Aenean fermentum, elit eget tincidunt conQuisque sit amet est et sapien ullamcorper pharetra.Praesent dapibus, neque id cursus faucibus, tortor neque egestas augue, eu vulputate magna eros eu erat. Aliquam erat volutpat. Nam dui mi, tincidunt quis, accumsan porttitor, facilisis luctus, metus
- 5 Things to Know When Shopping for a HomeCredit historyLenders and Banks are looking for credit clean customers. They will not lend money to you if you have any default on your credit file.Please contact us we will check your credit file for free and let you know if anything unusual is on your credit file which you are not aware of.Monthly debtManaging your debts in proper manner is the best way to move ahead, keep your monthly debts at minimal if you are looking to buy a home soon. IncomeLenders are more comfortable with the people who have stable jobs, but there are lenders who can also lend you if you have significant experience in the similar industry.AssetsMore assets you have more strong is your financial situation and it will help you get the home loan easier, so declare all the assets to your broker when you are buying your home loan.PurchasesWell last but not least, it is not easy to find the property you are looking for. Some time you like the property but the location is not good and on the other occasions you like the location but the property itself is not really appealing to you. So do not make decision when you are emotional, talk to your friends and family’s to get their advise before you buy.
- Home Loan Process FeesThere are a number of fees involved when buying a property. To avoid any surprises, the list below sets out all of the usual costs:
- Stamp Duty – This is the big one. All other costs are relatively small by comparison. Stamp duty rates vary between state and territory governments and also depend on the value of the property you buy. You may also have to pay stamp duty on the mortgage itself. To find out your total Stamp Duty charge, visit our Stamp Duty Calculator.
- Legal/conveyancing fees – Generally around $1,000 – $1500, these fees cover all the legal rigour around your property purchase, including title searches.
- Building inspection – This should be carried out by a qualified expert, such as a structural engineer, before you purchase the property. Your Contract of Sale should be subject to the building inspection, so if there are any structural problems you have the option to withdraw from the purchase without any significant financial penalties. A building inspection and report can cost up to $1,000, depending on the size of the property. Your conveyancer will usually arrange this inspection, and you will usually pay for it as part of their total invoice at settlement (in addition to the conveyancing fees).
- Pest inspection – Also to be carried out before purchase to ensure the property is free of problems, such as white ants. Your Contract of Sale should be subject to the pest inspection, so if any unwanted crawlies are found you may have the option to withdraw from the purchase without any significant financial penalties. Allow up to $500 depending on the size of the property. Your real estate agent or conveyancer may arrange this inspection, and you will usually pay for it as part of their total invoice at settlement (in addition to the conveyancing fees).
- Lender costs – Most lenders charge establishment fees to help cover the costs of their own valuation as well as administration fees. Your AFG broker can let you know what your lender charges but allow about $600 to $800.
- Moving costs – Don’t forget to factor in the cost of a removalist if you plan on using one.
- Mortgage Insurance costs – If you borrow more than 80% of the purchase price of the property, you’ll also need to pay Lender Mortgage Insurance. You may also choose to take out Mortgage Protection Insurance. If you buy a strata title, regular strata fees are payable.
Ongoing costs – You will need to include council and water rates along with regular loan repayments. It is important to also take out building insurance and contents insurance. Your lender will probably require a minimum sum insured for the building to cover the loan, but make sure you actually take out enough building insurance to cover what it would cost if you had to rebuild. Likewise, make sure you have enough contents cover should you need to replace everything if the worst happens.