So, you’ve decided to add “Get into my first home” to your list of New Year’s resolutions. Great! But where do you start?
It can be tricky to get started on your journey to owning your first home, especially when you don’t know what the first step is! To help ease the confusion, we have put together some of our top tips!
Get out of debt
One of the things you will need to tackle on your first home journey looking at any debt you might have incurred. We recommend that you try to clear as much debt as you possibly can, as this will make you look like a better candidate for further finance. Don’t be discouraged if you have large credit card debts or if you have a car loan, because if you take steps to pay off as much as possible it will help you to obtain finance easier. This is because as lenders look at the overall limits of your debts, not just how much you owe.
Know your credit history
The next step you will need to tackle on your first home journey is finance and one of the main things that will be looked at is your credit history. If you have ever missed at least 3 months of payments on a credit card or car loan for example, this will show up as a default on your credit history and can hinder your chances of getting finance. If you don’t know or are unsure about your credit history, you can quite easily check it through websites like Get Credit Score.
One of the biggest hurdles of home-ownership is the increase in costs that come with it, whether you are buying established or building your first home, there are additional costs that you may not have thought of! One of the best ways to prepare for this, is to get into the habit of budgeting to help understand your ongoing costs and to work out any areas you need to improve on saving or any unnecessary costs you can cut (do you really need 2 gym memberships!?). There are literally countless ways you can start your budget, whether it’s a simple Excel spreadsheet or if you need a little extra help with your budgeting, My Home Plan might be right for you! My Home Plan is a tailored plan to help you learn to budget and start saving, to help you get into your first home. This service will set you up with a budgeting plan that has been customised to suit your exact situation, plus you’ll even get a dedicated mentor to help you along the way. You’ll even be rewarded when you reach your savings goals!
Take advantage of freebies
If you are building your first home, there are government concessions you can take advantage of like the First Home Owners Grant (FHOG) which is a one-off, $10,000 grant to help first home builders get started on the property ladder. There are terms and conditions that will determine your eligibility, but your lender or home builder will be able to help you determine if you qualify for this money and can often help you apply.
Get your finance sorted
One of the most important aspects of buying your first home, is how you are going to pay for it all! Taking out a loan for your first home can often feel very daunting, which is where our experts at Bluebay Home Loans can help. At Bluebay Home Loans , we have helped thousands of first-home buyers across Perth and Melbourne take their first steps on their home-buying journey with our great range of finance products. Get started by booking an appointment with one of our team members today!