How to Get Finance for My First Home? – Part 1
Getting finance for your first home can be a daunting task.
Getting started in the process of getting approved for finance takes some confidence and it’s important to do your research so you understand what you can achieve, and to secure the fairest and best home finance product possible to suit your needs.
There are a number of key questions you need to consider when you ask yourself – how to get finance for my first home?
Are you ready to be a home owner?
What motivates you to get into your own home? Are you doing it for your own peace of mind? For your family or partner? What are your -long term personal and financial goals and how does home ownership fit into these plans?
Many first home owners want to get out of the rent trap, where mortgage payments for a physical asset make psychologically, as well as financially, more sense for you than ‘burning’ cash paying for someone else’s mortgage.
Of course, for many others, home ownership is about personal independence, freedom and a logical next step in the journey of life. Taking the time to analyse your big-picture ownership goals will help you be clear about what you want to a attain and will help motivate you to reach these goals.
Have you got your budget right?
What are your everyday expenses, weekly, monthly or yearly bills ? What kind of savings plan do you have and what are your current and expected income levels in the near, medium and longer term future? Be realistic about your goals and think carefully about what you think you can afford to make in repayments.
Talk to your partner about what they can contribute the mortgage and how much you are prepared to sacrifice to make your dreams a reality. Are there expenses you can cut out of your life? What are your career prospects? Do you think you can secure income in the long-term?
The best way to predict how much you’ll have to work with is to carefully track your spending habits over the course of several months. Take a look at what you are spending on entertainment, bills, credit cards, fees and charges, right down to how much you spend on lunch at work.
There are a number of smartphone apps out there that can help you track your spending and income to project how much you’ll be working with.
How to select the right home loan?
There are literally hundreds of difference finance solutions on the market. Many loans are extremely expensive and complex, while others are defiantely too good to be true.
It’s important to do your research, but given the plethora of options on the market, seeking advise from experts and those who have been through the process of getting finance for a first home is just as important. Taking time to narrow down a home loan product will potentially save you many thousands of dollars over the course of a loan.
Going it alone is always a risky move. Finding the right expert to advise you on choosing the right product will be well worth the investment in the long-term.
Aussie Living provides a team of experts who are specialists at helping first home buyers get finance and approval, along with guiding clients through the process of government subsidies and tax benefits, and much for information that will help you.
There’s a “Can I get my own home?” tool will help you get started.
In Part 2 of ‘How to Get Finance for My First Home’ – We will look at some of the more fundamental questions every first home owner needs to consider.
This next blog post will explore areas like the First Home Owners Grant, near term questions like the cost of moving, planning for the finance approvals process, analysing your options to make the right decision and more information to help you get finance for your first home.
Try the Can I get my own home tool now at Aussie Living Homes website.