Buying a House For the First Time

If you've decided to invest in a property it's important to understand the facts before you get ahead of yourself and call up the removalists

. Making the right choice is a matter of research. Talking to the right people will get you far, as will knowing your options and deciding what it is you're going for. Know what you're looking for in a first home, but be prepared to be flexible. This article will give you some starting points from which you can expand.

Defining what you want is the first step. This includes deciding how much money you want to spend, or are able to afford. Remember this is an investment and you are likely to be living in this house for some time so be sure to think carefully about what you want your house to include. If area is important to you this should also be a consideration. You can quickly whittle down your options this way and this defines a narrower search for your new property. This will make it easier for whomever you turn to for professional advice to help you further.

First Home-Owner's Grant. The FHOG was introduced in order to offset the effect of GST on new home ownership. The one-off grant of up to $7000 to put towards a deposit can be claimed only by Australian citizens or residents who are buying a house for the first time. The scheme is administered separately by each state, as as such you will need to satisfy the specific criteria according to your state's legislation.

Mortgages. Mortgages are loans from the bank, tying you into strict repayment scheme. How much you can borrow is based on your initial deposit and how much you estimate you are able to pay back in each regular instalment. As a general rule, most lenders will require a deposit of 10% of the purchase price. It is possible to borrow with a smaller deposit, but this can often mean a higher interest rate or hidden costs added onto your mortgage. There are many different mortgage calculators online to help you, and when you're ready it is worthwhile contacting a mortgage advisor.

The house buying process. Get your credit report. You'll need to prove you can pay back your loan.

Talk to a loan officer. Make an initial inquiry at your chosen lender.

Find a good Realtor. Try to find one that your friends or family recommend. Discuss with them exactly what you're looking for in a house and they'll come back at you with some options.

Go and view the houses.

Once you've chosen, the owner of the house is required to let you know what they know is wrong with the house. If there are a lot of repairs discuss with our Realtor about offering a lower price.

Making an offer involves you signing a contract. The offer is accepted when the sellers sign the contract also.

Have the house professionally inspected. Hopefully you'll find nothing else wrong, but if you do you can try and alter your offer.

The bank will have the property valued to ensure they aren't lending too much.

Finally, you pay the deposit and whatever fees are still owing (insurance, closing costs),and the house is yours.

Nobody pays for their house up front, and everybody is in the same boat when it comes to money, especially when buying a first home. There are, therefore, countless resources out there to help you decide, from online mortgage calculators to Realtors and your local bank. But before you go for help you should think about your needs. Finding a balance between comfort and affordability is the ultimate goal when buying a house, and talking to the right people and using the right resources will help you make the right decision about probably the biggest investment of your life.

Buying a House For the First Time

By: Michael Gibbons

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