Buying your first home is an exciting time! But like any first-timer, it is also easy to make mistakes. As a mortgage broker, I am dedicated to helping you have a smooth, and even enjoyable, time throughout the home buying and settlement process. Here are 4 common traps that you should look out for when you are buying your first home, and how you can avoid them!

1. Relying on family and friends for advice

   Your family and friends are often the first people you turn to for advice. Keep in mind that buying a home is a big decision and if your family aren’t buying houses every other day, they may not be experts. In fact, if they are like most baby boomers, they may have purchased their house many years ago, and over time, the lending environment has changed a great deal. Different people experience different circumstances, so what worked for them may not work for you! While they have your best intentions at heart, it’s always best to seek professional advice.

   When looking for professional advice as a first home buyer, start with a reputable mortgage broker (like me). Not only can I help you find the right home loan to fit your needs, I can also connect you to other professionals, such as a solicitor or conveyancer, a building and pest inspector and an accountant. Please speak to me if you need recommendations and I’ll give you a referral!

2. Underestimating the true cost of ownership

   It’s easy to get over-excited when you start looking at properties. While it’s fun to shop around and add those ‘ticks all boxes’ properties to your shortlist, it’s also important to be realistic and prepared. The last thing you want to do is to fall in love with a future home and find you can’t afford the home loan repayments after all!

   There’s a lot to consider aside from the price of the property – your deposit, stamp duty, lenders fees and charges, solicitor fees and more. Then there are the ongoing costs, such as rates, insurance, body corporate fees, maintenance and repairs. It’s important that you have a solid grasp of your financial situation and budget.

   As your mortgage broker, I can assist you to crunch the numbers. I’ll help you understand your borrowing power and create a home-buying budget for you. I can discuss pre-approval for your home loan, so you’ll have one less thing to worry about. This is key in understanding how much you have to spend, so you are only putting properties on your shortlist that you can truly afford. I’ll also let you know about any grants or concessions that might be available which could get you into your dream home sooner.

3. Getting a mortgage that doesn’t fit your needs

   All the different home loan products out there can get overwhelming, especially for first home buyers. Offset or redraw accounts? Fixed or variable rates? Line of credit? Split home loan? There’s a lot of decisions to make! That’s why I am here to help you.

   As your mortgage broker, my job is to make it easy for you to understand your financial situation and guide you as you make these important decisions. It is also my job to help you compare the home loan market, find you the right home loan based on your current situation, and walk you through the home loan application process.

4. Letting your emotion get the best of you

   Buying your first home is exciting, overwhelming, and can be stressful all at the same time. It can be easy to let your emotions cloud your , but try not to. Do your research to ensure that you get the right property at the right price. I am here to assist you every step of the way, so you can make an informed decision. I also have access to property valuation reports, so if you have a potential future home in mind, let me know and we can see how the numbers stack up.

We hope this article helps you identify some traps for new players. Let’s make your home ownership dream a reality! Speak to me so we can help you with planning, as well as refer you to other reliable professionals if needed. Call today!