Buying your first home is a milestone achievement that comes with long-term financial commitment, so if you feel a little intimidated, you’re in good company.
However, the process for buying a home can be broken down into digestible, achievable steps that lessen the fear of the unknown. Buying new or building with a house and land package is a great way to bring your goal to life, so let’s take a look at the journey from start to finish.
Know your borrowing capacity
Understanding your budget and borrowing capacity from the start will save you time and disappointment looking at properties out of your reach.
Chatting to an independent mortgage broker early will help you define your repayment capacity based on income, financial commitments, assets, dependants, deposit, credit score and whether you are buying with somebody else.
Be aware though, as some lenders will give you a maximum loan figure, which may not be realistic for your lifestyle. Factor in some buffer so you can live comfortably and happily if circumstances change.
Navigate the loan maze
Home loans are anything but “one-size-fits-all”, so be clear on exactly what features you want and how much risk you can tolerate.
A variable option means your interest rate will change, while fixed loans lock your interest rate in for a certain time period, which protects you against rate changes. You can hedge your bets with a combination of both.
It’s an excellent idea to use an offset account against your mortgage, which uses your savings as a repayment against your loan, saving you on interest.
By now, you’ll need to know what you “require” (how many bedrooms, public transport etc) and what you “desire”. Armed with your refined shopping list, review newspapers and online channels, attend house inspections, speak with agents and meet with property groups to understand the options within your pre-approved budget.
House and land packages are ideal for first home buyers as they include land purchase, home design and build process (with a number of inclusions), meaning they deliver a home perfectly tailored to you.
Lock in your contract
Once you agree on the price, you need unconditional loan approval, which involves completing the lender’s formal documents and a property valuation.
The seller will prepare a sale contract, including the deposit figure, due date and settlement timeframe. Your legal representative will review it in detail then take care of any conveyancing and ensure council and regulatory requirements are met.
Construction and finalisation
At this point, if you’re building off the plan, construction will take place. If you’ve partnered with a property group like Insignia Homes, we’ll take care of the build from start to finish. After completion, you’ll need to have insurance organised because the home is officially yours – you’ll be handed the keys and get the green light to move in.
Claim any bonuses
So, there you have it. Your plan to realise your home-ownership dreams.
The good news is that if you use a property group like Insignia Homes, we’ll take care of all the details and walk you through the process step by step. It’s as simple as connecting with our team so we can chat, with no obligation.