Are you ready to take the leap onto the property ladder? Before buying your first home, it’s crucial to familiarize yourself with all the intricacies involved. We recently had a conversation with Kim, a first-time homeowner at Rise Real Estate, to gain valuable insights into the costs associated with purchasing her first home.
Saving for a Deposit
When saving for your deposit, a clear goal is crucial. Most lenders require a deposit of 10% – 20% of the borrowed amount. For a $500,000 property, that’s between $50,000 and $100,000, depending on your circumstances and lender’s requirements.
Remember to meet eligibility criteria and regional price caps. Explore options to secure your first home with confidence!
Getting a Mortgage
Securing your first mortgage is likely the most significant financial commitment you’ll ever undertake!
It’s highly advisable to enlist the expertise of a mortgage broker, so that they can assist you in finding the optimal financial offer, tailored to your needs. Refrain from accepting the first offer that comes your way; take the time to explore different options and hunt for the best possible deal.
Remember that mortgage brokers can vary in quality and service, so it’s wise to seek recommendations for the top professionals in your area. Doing so ensures you’re working with one of the finest experts in the field.
Lawyer Fees
Before signing any Sale & Purchase Agreement or any Mortgage paperwork, you’ll need your Lawyer to give you the all-go!
You’ll also need a Lawyer to handle the ‘conveyancing’ once you’ve purchased your home. Finding a Lawyer can be achieved by a simple Google search or a recommendation from a friend or family member.
Builders & LIM Reports
Obtaining a builder’s report and a Land Information Memorandum (LIM) is strongly advised when purchasing a house. Here’s why:
1) Builders Report
A professional builder’s report is invaluable in identifying potential issues with the property you intend to purchase.
2) Land Information Memorandum (LIM)
A LIM provides essential information about the land on which the house is situated. It specifically highlights any concerns about drainage, land risks, and other relevant land-related issues.
You can obtain a LIM by contacting your local council directly or seeking your lawyer’s assistance.
3) Ongoing Costs
Your mortgage repayments aren’t the only thing you’ll need to budget for in your new life as a Homeowner; other expenses include insurance, rates and additional ongoing costs.
If you’re still curious and would like to know more before beginning your ‘home ownership journey’, refer to our ‘Go-To Guide’ or get in touch with Rise Real Estate; no question is too big or small!
