First Home Buyer advice I wish someone had told me...

First Home Buyer advice I wish someone had told me

Purchasing a property is often the single largest investment a person or family will make, but it can be a bewildering experience if you don't really know what's going on.

In this guide, we go through the first home buying advice I wish someone had told me before I bought my first place...

00:00 First Home Buyer advice I wish someone had told me...
00:16 1. You Don’t Need A 20% Deposit
01:28 2. The Banks Are Gonna Lend Massive Amounts Of Money
02:47 3. Buying A Place Involves So Many Costs
03:41 4. Pre-Approval Doesn’t Guarantee A Loan
04:44 5. You Will Need To Get Insurance
05:26 6. Buying At Auction Is Not The Same
06:08 7. Understanding The Rules And The Property

1. You don't necessarily need a 20 per cent deposit

20% is great But lets get real Saving a 20% deposit can be hard.
If youre buying for $500,000 place, that’s $100,000. (Cut away to cheque) You can get a place with between 8-10% deposit . There are 1-2 lenders that do 5% deposits but the LMI costs etc More deposit, lower repayments better rates etc.

2. Banks will lend you a massive amount of money

You might have visited a mortgage broker or spoken to your bank early in the process.
They would have punched away a few figures into their calculators to see what comes back...
Some banks will give you millions of dollars based on what you can afford to repay. It could be simple to fall into the trap where you borrow too much Look beyond what they can give you, and what you can afford. Remember interest rates won’t always be low, for our clients at Hunter Galloway we do increased repayments assuming interest rates are 1-2% higher.
This buffer makes sure you can keep your lifestyle in your new place.

3. There are sooo many costs when buying a property

Buying a place is not just a matter of saving a deposit and buying a home. There are a range of other costs including stamp duty, transfer fees, government fees, charges for building and pest reports, LMI and conveyancing and solicitor's fees that can add up to thousands of dollars. These all chip into the deposit you have saved and reduce the amount you actually can put into the purchase.

4. Pre-approval is no guarantee of getting a loan

Many lenders offer a pre-approval service where they will weigh up your income, expenditure and amount of personal debt against your deposit to see if you qualify for a loan.
It gives you the confidence to go ahead and make offers on properties within your budget, but it is no silver bullet. The full loan approval only comes after the lender receives a signed contract, where they investigate and see if the property is a worthwhile investment.

5. You need to take out insurance the day you sign the contract

After agreeing to a price with the seller, there is still a settlement period before the buyer can actually move in. nEven though it may be 30 days before you pick up the keys, you need to take out insurance on the property in the interim to protect against any damages.
The legal liability for damages varies between the states and territories, but some lenders will insist that buyers cover themselves before settlement.
It is probably wise to take the advice of your solicitor or conveyancer to learn of your position.

6. Buying at an auction comes with a different set of conditions
Some agents prefer to sell houses via auction, but it can be a trap if you are unsure of your finances or have doubts about the building and pest reports.
In a standard conditional offer you can add a backstop, where if your finance does not get approved or the building has any issues you can pull out.
But you do not have that luxury with an auction, meaning if the reserve price is met and you win, you will have no option but to buy the property.
Do your research, go to a couple of auctions and make sure the first auction you go to is not the one you're participating in," she said.

7. The process can feel like a game with changing rules
Buyers and agents seem to be locked in a game of distrust where everyone is holding their cards close to their chest.
I naively thought honesty would be the best approach and was happy to discuss my budget and how much I was looking to spend.
When making an offer, I was at times told I was "in the ballpark", only to find out the owner was looking for $50,000 more than I could pay.

Видео First Home Buyer advice I wish someone had told me... канала Mortgage Broker Brisbane - Hunter Galloway