Real Estate

Home Loans for the First Timer

Settling down in a new place and deciding whether to purchase or just rent a house depends on your financial capacity and the available options presented to you. It can be a gruelling task that involves a lot of consideration, time, effort and analysis on the home buyer’s part. What makes it harder if it’s your first time deciding on such an important matter like this. So to help you get started, here are a few guides to assist in your decision-making.

Buying or Renting?

As a person looking for a new home you will have a lot of needs. Identifying these needs and setting priorities to meet them can be helpful. Asking yourself these two basic questions you can help you decide:

  1. Will I be staying in this place for a long time?

Most likely, if you plan to live in a place for a period of 3 months to a year, it’s better to just rent a house but when you plan on staying for 2 or more years, or probably settling down in that place, then the option for you is to buy a house.

  1. Am I living alone or with my family?

When you live alone, it can be tedious to tend on a whole house by yourself so it is best to just rent, especially when you’re not yet set on settling in that place. But when you are with your family, or you are a person who is starting a family, then it would be best to have a house of your own.

Am I Eligible to Apply for Home Loans?

Financial stability is an important consideration for first time home buyers as houses are never cheap. As a potential home owner, you will have a lot of expectations when it comes to looking for your new house, and wanting the best out of your new house will definitely cost a lot. Good thing, banks and other certified institutions offer loans or grants for home buyers. What is basically needed in applying for a loan is if you have savings set aside for house purchase and you have a regular source of income as you have to pay a certain amount of money for the capital and interest at regular intervals.

There are different financial institutions that offer home loans for first time home buyers, like banks and credit unions among others. Also, the Australian government offers what is called “First Home Owners Grant”. You can check out your eligibility for this grant online.

I’ve decided to apply For Loan… What’s next?

Deciding to apply for a loan means that you have analysed yourself and have found that you are financially capable to pay. Once this self-assessment is over, you can then contact a local bank or home loan brokers Adelaide. There are a lot of companies out there so it is best to choose among them someone you can trust and work well with.