- Financial Agreements
Family Law | Six Steps to Buying Your New Home
• July 25, 2023
The process of buying your first home can be overwhelming with the amount of hoops that you have to go through. Whether you are a first home owner, buying an investment property or starting fresh after family law proceedings, there are so many things to consider and prepare for the purchase of a home. But, never fear, this family law firm has come up with the six steps that may help you move into your new property!
We would like to add a quick disclaimer. We are not real estate or property experts, but rather, we would simply like to share our previous experience and knowledge to help you buy your first property.
Family Law: Six Steps to Buying Your First Home:
What Can You Afford?
Your income, credit score, expenses and liabilities will determine the amount you can borrow from the bank and thus the type and the location of the property you can afford.Once you know the price of the property that you can afford you can begin to refine your searches and research the areas that have the property you are looking for. Many websites contain borrowing calculators which calculates the amount that you may be able to borrow. Moreover, it could be beneficial to contact a broker to determine your initial standing regarding the amount you can borrow and thus the property you can afford.
Save, Save, Save
The second step is to SAVE! Depending upon your chosen price range for the land, house, apartment or townhouse you would like to buy, your deposit may increase or decrease. The best way to increase your deposit savings is to create a budget, taking into account your incoming income and outgoing expenses. Sticking to a budget will slowly begin to build your savings and staying consistent will result in your goal being reached more quickly than sporadically saving.
When considering you deposit be aware of the hidden costs of buying a home as well as research into your eligibility for government schemes such as, First Home Owner Grant or the First Home Loan Deposit Scheme
Home Loan Rate
The interest rate at the time of buying a property is significant given a small difference can make a difference when considering a long-term debt. Comparing home loan rates across lenders will help you have the best opportunity at having the best rate on you loan. A pre-approval loan can be granted and does not commit you to the loan. It merely affirms your eligibility to borrow the determined amount from the lender.
Find A House
When researching the property type you wish to buy ensure you have a list of criteria you would like to be met:
- Determining if you would like to live in the city, country or on the coast will alter your research significantly.
- Depending on your circumstances, you may wish to take into account the schools in the areas you are looking to buy.
- Public transport
- Having the option for public transport may be important to you and something that will require some consideration when researching
- Property Layout
- Your preference in how a property is laid out can make or break your decision as the lay out of the home must suit how you live.
- Investment or a home?
- The type of research and criteria that has to be met when you are searching for an investment property compared to a property you wish to live in can vary significantly.
The Price is Right
Buying at auction can be thrilling, exciting or it can be disappointing given the way the auction can change so quickly as there may be other people there trying to buy the same property.
One important tip is to know what you can afford and to keep cool, calm and collected.
Before you have completed the property-buying process, consider more costs that may involved including, stamp duty and home and contents insurance. Once you have made those payments the property will be transferred in your name and you have completed the process, congratulations!
How can Umbrella Family Law help?
As always, Umbrella Family Law would love to help you in your first home ownership journey. If you require any assistance, we can support you by referring you to a buyer advocate, or similar, that we know and trust. If this is something you would like to begin with, please contact our office.