Buying Your First Home: A 10 Step Guide from Start to End

The time is here: You are ready for the big step: buying your first home! You are planning to buy a new house; this is exciting! Do not delve into the adventure rashly. Weigh everything, compare mortgage loans and calculate everything correctly. How do you estimate all costs and assess a home?  

This is your first home, so a lot is coming your way. We know that you have any questions on how and what you have to arrange. We are happy to help you on your way step by step with this guide to buying your first home.  

Step1: Consider Your Reasons To Buy Your First House  

For many people, owning a house is the major reason to buy. Your own house, all yours, where you can do whatever you want. In addition, you put the money that you pay every month into your own home. It is, therefore, an investment, which is different than if you rent a house. You pay for something that is yours, instead of giving someone money every month to live in a house which is not yours. Thus, your choice of the new house depends upon your reason for buying it.  

Step2: Calculate Yourself What You Can Borrow  

Make a quick mortgage calculation now to see what your maximum mortgage amount is. Have a detailed insight into your financial options as per your affordability. Here you need to calculate the (expected) sales price of your current home (if any), the purchase price of the new home, savings, and debts. You can also directly compare mortgage types and fixed-rate periods in the suburb by concerning a real estate agent.  

Step3: Consider The Risks  

Buying your first home is not without risk. Now house prices are sky high, but if they fall, your house can be flooded. That means that your mortgage is higher than your house is worth. You also have to arrange everything yourself if there is anything wrong with your house. For example, do you suffer from leakage, or is something broken in your house? Then you need to make sure that this is fixed. With a rented house, this is the responsibility of your homeowner or the landlord.  

Step4: From Orientation To Mortgage

Once you have had your orientation meeting, there are a number of steps you take before taking out a mortgage. If you are considering a mortgage to buy your house, it is good to know a little more about that. It can therefore be useful to learn more about how the process of buying a house exactly works. Before you start looking for a home, you need to know what price range to look for. It would be annoying if you found out too late that the house you fell in love with cannot afford.  

Step5: New construction or existing construction?  

You may not have thought about this at all, but it is good to think about it. Do you want a new-build house? Or would you rather go for a house that has been standing for a while? There are a few significant differences between buying new construction and buying existing construction. View, offer, and take out the mortgage; everything works slightly differently. An agent or mortgage broker can help you compare the differences between buying a new or existing property.

Step6: Preparation  

A good start is half the work. Always make sure that you are well prepared for viewing. Think about what you want to ask in advance and write down your questions if necessary. This way, you will be sure that you do not forget anything. In addition, make sure you also bring a pen and paper to be able to write things down on the spot. I have drawn up a handy checklist, especially for viewings.   

The best real estate agent in Wantirna South or nearby suburbs will help you view, negotiate, bid, and a lot of other things that go with it if you want to buy a house.  

Step7: How much should you bid?  

Determining an opening bid is not always easy. Overbidding is the order of the day. First home buyers usually can’t afford to pay too much; on the other hand, bidding too low creates the risk of someone else getting the house. As you can see, determining your opening bid still takes quite some effort. But do not worry! Here too, ask your agent about the market prices and evaluate the cost of the house accordingly.  

Step8: Mortgage Advice  

The next step is the consultation with your financial advisor. In this interview, you will look at your situation together with the advisor, and you will receive help in making decisions. In addition to financing your new home, you also discuss any risks that you run when losing income due to, for example, disability or unemployment. The advisor will discuss the various home insurance policies with you.  

Step9: Appointment at the notary  

After taking out the mortgage, it is almost the time: your new home is in sight! Your chosen notary draws up the mortgage deed and the deed of transfer. The mortgage is arranged with the mortgage deed, and the transfer of the house is described in the transfer deed. Usually, you will receive the drafts of both documents beforehand so that you can read in.  

Step10: Moving  

Are the moving boxes ready? Or does your new home have to be renovated first? If you have included the costs of a renovation of your new house in your mortgage amount, you can move on with the renovation of the house first; else, you can move to your first own home. Congratulations!  

Additional: Insure your home  

You naturally want to insure such an important asset as a house. What about all your new furniture and other stuff? With home insurance and contents insurance, your belongings and your home are covered for damage in and around the house. So, you can also consider the insurance of your home depending on your preferences.  

Now when you are well aware of steps you need to pass through when buying your first home, go ahead, start your search, and consult a professional real estate agent.