Tips for first-home buyers
Is it a good time to buy?
Any time is good time to buy the house you are going to live in. Quite simply, pay your own mortgage, not someone else’s. The house prices may fluctuate but in the long run and every reasonable aspect put together, owning is a better option than renting. With interest rates continuing to be historically at their lowest and the property market soberer than before, there has never been a better time for the first home buyers.
What can you do for success of your loan application
- Talk to a good and experienced Mortgage Advisor — it will not cost you anything, but you will benefit from their expertise and knowledge as they will provide options whilst guiding you through the whole process.
- Maintain clean credit history which does not have defaults / too many enquiries in short span of time. You may request your own credit history file free or at nominal charge.
- Maintain good account conduct with no dishonors / unauthorized overdrafts.
- Resist avoidable purchases and continue saving towards deposit, including Kiwi Saver.
- Keep your debt to minimum possible.
- Use your credit card sensibly and pay off in full at due date. Do not use credit card for cash advances.
What do you need to look for when you do a property check?
- Have proper due diligence while purchasing. Ask questions — it is your right.
- Seek advice from experts — RE Agents; Mortgage Advisers; Solicitors; Accountants — Get the LIM checked by your solicitor.
- Check the floor plan. Look closely if any additions not consented by council?
- Get a building inspection done.
- Get a Meth test (P test) report, if you feel a need.
- Visit the property more than once, especially evening and feel the neighborhood.
- Do your research carefully about the maximum you will pay for the property.
- Get the bank to approve the property before you make unconditional offer or bid in auction.
What are the different costs involved in the process of buying a property?
- LIM — urgent orders may cost up to $389
- Builders inspection report — may vary but around $600
- Registered Valuation Report, if required may cost around $600-$700 for a standard residential property
- Meth test — consider if required — may cost around $200
- Conveyancing and legal advice to complete the purchase transaction through your solicitor — may vary according to work involved, check with your lawyer first
Getting a home loan is no longer a tedious process. Mortgage brokers can secure mortgages at a much lower rate as compare to traditional banks. Independent mortgage broker is a process that will save you money, they are trained experts in the field of low deposit home loans, refinance housing loan and know their client’s financial situation and attempt to find them a mortgage that suits their specific and individual needs.
