How to Get Finance for My First Home – Part 3
This is our third and final post in our series on how to ‘get finance for my first home’.
In part one, we looked at being as prepared as possible for being a first home owner. Some of those important first steps included asking questions like; Am I ready to be a home owner?; Have I got my budget right? And we looked at tips on how you can select the right home loan for your unique situation.
In part two of ‘how to get finance for your first home’ we looked at the work you need to do to understand the first home owners grant, working towards an appropriate deposit amount, saving for your deposit for your first home and finance tips and ideas.
Once you have established all those questions and point, now it’s time to make the move to getting finance for your first home.
Getting the right advise from an expert:
The next move is to talk to an advisor. You have prepared as much as you can, got a goal in mind and you’re psychologically ready to take this next big step in your life.
At this point you have done your research and you have a clear goal in mind about how owning your fist home fits into your life, your dreams and overall life goals. Going to an advisor could be a really valuable way to get an honest evaluation about your current financial situation and how to manage your financial goals in the longer term. It’s important to keep this task as emotionally detached and honest as possible about what your real situation is and what you can realistically achieve.
Find your ideal home:
Now it’s time to find the right home and the right package you are looking for that both suits your financial abilities and your overall goals.
The hunt for the perfect first home can be a daunting task. Choosing to buy or build is your next step. Presumably, you’ve decided to take advantage of the first home owners grant in Western Australia and you may have decided to go down the rewarding path to building your first home.
Knowing this, you’ll need to determine where you want to live, what design you want and how much this is going to cost. Aussie Living Homes specialise in first home buyers. House and Land Packages are the best way to go, as getting a block on your own can be extremely difficult to source.
Understanding the upfront and ongoing costs:
Lenders’ Mortgage Insurance (LMI)
Typically, if you are going to borrow finance for more than 80% of the value of your home, you are going to need to take out insurance.
Loan Application Fee
You’ll need to pay a loan application fee with most financial institutions.
Legal / Conveyancing
Typcially, you’ll need to appoint a Settlement Agent to complete the purchase of your property for you.
The price of your property will determine how much you pay for Stamp Duty, Land Transfer Fees etc.
Home & Contents Insurance
Most lenders will require you to take out Home & Contents Insurance.
There are typically cost for connecting water, electricity and gas from private and government owned energy companies.
All councils will charge a yearly fee. Ask you local shire for more.
Taking into account these initial and ongoing cost will help you determine how much you need to invest now and in the longer term. Take the time to put these in a spreadsheet or document to account for everything, so there are no unexpected bill and charges.
Get Your Finance:
So you’ve made it to the final hurdle. It’s time to apply for finance for your first home.
There a many institutions you can turn to and it really comes down to your personal circumstances as to who you choose. Turning to a financial advisor without a vested interest in any particular firm may be the best way to go. We’ll take a look at this in a future post.
# This blog post is aimed at giving general advise is for general informational purposes only.