What You Need to Know When Buying Your First Home?

First home buyer
Finance

When you initially embark on the journey of buying your first property you may be overwhelmed by the entire process. There is a whole new world of jargon to learn – not to mention you are about to make the biggest financial decision of your life to date!

However – you don’t have to tackle this process on your own. There are a number of professionals that will make up your team and assist you along the way.

Your mortgage broker will be your first point of contact and can assist in perhaps the most important aspect within the process – securing finance. Your mortgage broker will take an in-depth look into your unique situation prior to calculating your maximum purchase price and find the most efficient way of structuring your finance. The most suitable lender will then be utilised, enabling your broker to negotiate the most competitive deal on your behalf. Famous American investor Robert Kiyosaki once commented that ‘to understand property is to understand finance’ – take heed and get this important first step underway. Furthermore, mortgage brokers are generally paid a commission by the lenders and will not charge clients for their service.

Once you have secured finance pre-approval your next step will be to engage a solicitor. A solicitor will provide guidance and advice during the entire transaction process. This includes services such as a thorough review of the contract of sale and strata report but can extend further to ownership agreements between related parties and other advanced legal work. It pays to have an efficient and knowledgeable solicitor on board – they are worth their weight in gold.

Once you have assembled your finance and legal team you will then be in a position to begin making offers and negotiating on the purchase price of suitable properties. During this process you will begin to build relationships with local real estate agents in the areas of your potential property. It is a good idea to nurture these relationships as local agents will know to contact you when a suitable property presents itself. Remember – selling agents are paid by a vendor, and it is a must that you complete your own research prior to making an offer.

Once a suitable property has been located and your offer has been accepted, your mortgage broker and solicitor will work together with all associated parties to ensure a smooth settlement.

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