Things you should avoid

Failing to find a good mortgage broker

Landing a mortgage is tough these days. Finding a knowledgeable mortgage broker will help the buyer get their finances in order, and he will give them a few options to choose from.

Bad Account History

Bank would want to see your account history to check your credit. If they see dishonored direct debits, this will not make you look good, and your proposal could be declined straight away. Your home loan won’t be fully approved until the bank has seen your bank statements.

Choosing the wrong area

The suburb you move into will becomes a big part of your life so it's important that you make the right decision when it comes to choosing a suburb.

Things to consider:

  • Location & surrounding area
  • Commute
  • Check for the facilities it offers. Are there adequate amenities nearby for your needs?
  • Look for enough related services nearby such as childcare centres, parks etc.

Failing to get a property inspection

There are some terrifying stories about those who've purchased a new home only to face endless problems. If you think that nothing bad will happen to you, you might be wrong. It's always good to be prepared. Property buying is one of the most expensive financial commitments you'll ever make. It’s always advisable to get the property inspected by an authorised inspector to avoid any headaches in the future.

Avoid Buying Fatigue

Many first home buyers start their property hunting journey by looking at properties (and attending auctions) over their budget or beyond their reach.

Eventually they get buyer fatigue and end up buying the first thing they can, which is never an advisable approach.

Failing to choose the best mortgage product

Failing to choose the best mortgage product will end up costing you a lot.The more money you owe, the more interest you’ll pay.

So it's always wise to choose the best mortgage product that will save you money.

Not being familiar with the buying process

Before you start your search be aware of the facts of buying a home. For example, read up on how auctions work, the best way to go about making an offer, what to look for when buying property, and real estate agent tricks and traps.

Speak to good mortgage brokers and take their expert advice.

Going over the budget

As a first home buyer, always be in your budget and don’t go out of your reach. If you do, it might affect you and your loved ones' financial situation and will increase your stress. It's always good to be on the safe side if something bad happens, such as hikes in interest rates or redundancy.

Not acting quickly

Once you find your ideal home, whether it's the first house/apartment or one of many you have seen, if it feels right and it's within your reach (and you've looked at all the aspects above), don't leave it too late before making an offer. Someone might just beat you to it.

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