First home buyers’ checklist

Buying your first home is one of the most important decisions you’ll make. Just like any important decision, it’s best to be prepared.

Disclaimer: The information contained in this article is of a general nature only and should not be taken as financial or legal advice on any of the topics discussed. Always consult a financial adviser before making any investment decisions.

Your first foray into the world of home ownership and investment can be daunting. Having a good understanding of the buying process and what you need to secure the right home loan for your needs can go a long way to setting you up for success.

Here’s our handy guide to help get you started:

1. Figure out your budget and sort out your finances. This can include reviewing your credit history and making sure you pay your bills in full and on time. Cull any unnecessary expenses, reduce credit cards and other debt and build a healthy savings routine, even if only a small amount each pay.

You could use our quick and easy budget calculator tool, and in a matter of minutes you will be able to work out how realistic your financial goals are.

2. Determine how much you can borrow. Use an online calculator to help determine how much you can afford to borrow. This allows you to start looking for properties that match your financial capacity right away.

3. Be sensible about your budget and what you can afford; your first home doesn’t have to be your dream home!

4. Decide on your must haves. What do you want out of your first home? What lifestyle appeals to you, and what suburbs best support that? How many bedrooms and bathrooms do you need, now and in the future? What size backyard do you need for your kids and pets? Is on-street parking suitable, or do you need garage space? Owning property in a suburb where street parking is monitored from 8am to 6pm can be a frustrating and costly experience.

5. Research the loan approval process and how to position your application for best chance of success.

6. Do your homework on the right type of loan for your particular needs and secure the appropriate pre-approval before you begin your search. There are different fixed and variable options on offer, each with a particular set of benefits. For example, a fixed interest rate usually has a cap on the additional payments you can make each year.

7. Get to know the area you are considering, including public transport options, shopping and amenities, community support, sporting facilities and more. Before you move into a particular street or home, remember that you could be living beside your neighbours for a decade or more. Visit the local area at different times and on different days to build a well-rounded picture of who you will living next door to.

8. Research the sales history and property turnover for the areas you are looking at. There are many resources that record this important information, including realestate.com.au and domain.com.au.

9. Find similar properties that that meet your needs and follow them through the sales process. How long have they been on the market for? Do they sell above the listing price, or do they often fail to meet the reserve? Understanding market trends will help build your knowledge and negotiating power.

10. Get professional advice. Real estate agents, brokers and financial advisors can offer guidance on the real market value of houses in your desired locations, and give you a good idea of how much you can afford.

11. Check for any grants and other exemptions that may be available. Decide if you want to buy an established home or build and consider how that will impact your loan, the associated costs and what you can get for your money.

12. Verify what documentation you need to begin the process of applying for a loan with your lender.

13. Find people you trust who have been through this process before. Ask them what pitfalls they experienced, so you can learn from their mistakes. Don’t be afraid to ask for help. Always seek out several different perspectives on properties and financing options to help you work out the best approach to successfully purchasing your own home.

Interested in finding out more?

Then book a free home loan health check today! Our home loan specialists can help you weigh up the pros and cons to help you find the right low interest home loan for your situation. No strings attached. No obligations.

Remember, at Health Professionals Bank, we have a range of home loans that can suit anyone.