First time homebuyers have a step learning curve when purchasing a property. The competitive Melbourne market is cut throat and first timers need to have an arsenal of knowledge on their side in order to gain an advantage against the competition.
Here are our top 7 tips for first time homebuyers.
- Find a good mortgage
All mortgage seekers should compare at least 3 different lenders to find the best deal. Interest rates are at a low in Australia right now, but this doesn’t mean you can’t potentially secure a better deal with a different lender.
- Check your credit
Your credit will effect the mortgage terms and conditions. Pay off debts to boost the score, and dispute any faulty claims against you.
- Know your buying power
How much monthly debt can you safely afford? To get an idea, the amount of bills you pay needs to be roughly 45 percent of your gross monthly income.
- Get a good agent
Once you have a mortgage lined up, and know your buying power, you can source a buyer’s agent to help you with the hunt. The agent will help you get the best house you can afford in the area you are looking. A good buyer’s agent can also direct you to off the market properties.
- Expand your horizons
The market moves quickly in Melbourne. You might be able to afford an apartment in the CBD, but if you expand your horizons, you’ll see that you can also afford a townhouse a few kilometers from the CBD.
- Be ready to pounce
Once you’ve found the property and have placed a bid, you will need to have your finances ready to go pretty quickly. Make sure you have everything lined up, and ready to send away for a quick close. Failure to do so, might result in a deadline being breached, and the vendor keeping your deposit!
- Pay attention to the home inspection
The home inspection will uncover any issues that the property has, like with the foundation, electrical or plumbing works. You need to know exactly what you are in for, and if there are any issues uncovered, if you are able to back out of the deal.