Sarah: Buying your first property is an exciting decision that takes a lot of planning and
research.
As a first time buyer it can be difficult to know where to start and what's involved
in buying property.
Hi guys, it's Sarah from Lendi, Australia's number one online home loan platform where
we've already helped thousands of Australians refinance or get a mortgage.
Watch this video where we'll go through a list of things for you to consider before
you make the decision to buy a property and all of the important questions to ask yourself
before you even begin property hunting.
Sarah: Now, before we start, if you want great tips for home loans in Australia, please subscribe
to our channel and don't forget to hit the bell to be notified when we upload new videos.
So are you able to put down a substantial deposit?
Ideally, when purchasing a property, most borrowers will aim to have a 20% deposit or
more of the purchase price.
If you can save an even larger deposit, it can be worth your while because it will lower
your loan to value ratio, which is your LVR.
Generally lenders will offer lower interest rates for people that have a low LVR.
For more information on what LVR is, check out our video on YouTube here.
How good are you at saving?
Sarah: If you're looking to buy a property, it's important to know how much money you
currently have and how much money you will need to pay back alone.
An updated record of your savings, income and spendings will not only help you budget
but will also assist in getting you a home loan.
What is your credit rating?
Your credit rating allows lenders to determine your credit worthiness and if you would be
a risk to that lender.
Checking your credit score is vital when you're a first home buyer.
As an unblemished credit score will make the home loan application process a lot easier.
You can improve your credit score by making sure that you pay all bills, down payments
and credit cards on time, and also making sure you don't have any other debt.
For more information on credit scores and how they can impact a home loan application
check out our YouTube video here.
So what can you afford?
As much as you might want a waterfront mansion, it's important to understand what you can
afford.
You might need to take a step back and budget.
Sarah: Remember that beyond the house price itself and paying off the home loan, there are
existing upfront costs such as legal fees, stamp duty, hidden costs as well as living
expenses and moving costs.
So try calculating the total cost before buying the property.
Now what type of property will suit your lifestyle?
Think about your situation and if it might change in the near future.
Are you planning on growing your family or perhaps you want to stay there for a short
amount of time.
As tempting as it might be to jump on the property ladder for first time buyers, it's
important to think about if you can see yourself living there in the future and if the property
that you're looking at will accommodate your needs or the needs of your growing family.
So what suburb fits your needs?
You may love the property itself, but if it's far away from friends, family, work, school,
amenities or facilities, it may become your worst nightmare.
Sarah: It's smart to research different suburbs to find a property that's located close to
things that you value.
Are you someone who enjoys renovating?
You may be tempted to buy a property that needs a little TLC, but it's important to
recognise whether or not you have the funds or even the motivation to do that.
Although home renovations are often shown as being quick and easy realistically, they're
expensive, challenging, disruptive to others and can cost a lot of money.
If you're considering a fixer upper property, this might be something to consider.
How do you know if a property is in good condition?
You may have found the perfect property, but before you put down a deposit, it might be
worthwhile getting a building and pest report to make sure the property is structurally
sound and pest free.
Pest inspections could save you a lot of money in the future and you can avoid health and
safety issues.
Sarah: Buying a property before taking these precautions can put you at risk of having
to spend more money down the track.
Now finally, can you qualify for a first homeowner grant?
Every state and territory has a first time homeowner grant criteria and most require
your property to be below a certain amount.
If you qualify, this could be a huge boost towards your 20% deposit and you could avoid
paying lender's mortgage insurance.
For more information on this, you can check out our article in the description.
Buying a property for the first time is a really big decision, so making sure that your
finances are in order and you've done the property research is essential.
Sarah: If you're ready to jump on the property ladder, let Lendi take the hassle out of applying
for a home loan and help you find the right deal for your individual needs.
That's it guys.
Now you know the questions you should ask or start thinking about before you buy your
first home.
Now, if you're looking for more tips, you can join our Home Loan Hacks Australia Facebook
group where we answer all things home loans.
Finally, if you found this video helpful, please give us a thumbs up and if you have
any questions, leave them in the comment section below.
If you want more information on other relevant home loan topics, you can watch our video
here.
See you next time.