Buying your first home?
Buying your first home can be an exciting experience, but it can also be quite daunting. As this is likely to be the biggest investment you have ever made, it is important that you understand your options, the process and consult an expert about any questions you may have.
Pacific1 Finance has prepared a guide to assist you in this process. Click the links to the right for more information on obtaining finance.
There are many advantages to obtaining pre-approved finance.
When you have finance pre-approved, you become aware of how much money you are able to borrow. This allows you to know exactly how much you can offer, when purchasing another property.
Vendors prefer unconditional offers from pre-approved buyers, as opposed to having to wait for an applicant to receive approval. Where one applicant has pre-approved finance and one does not, pre-approval can be the difference between being the successful purchaser.
To buy at auction, your loan MUST be pre-approved. In most cases, a cooling off period does not apply to properties bought at auction. Therefore, a "subject to finance" contract will not be an option. Finance pre-approval can help streamline the property search process, as you know exactly what price range you can afford.
For finance pre-approval, please contact us.
- If you want larger land or space to improve, try looking at emerging estates and subdivisions. Try areas that are further from the city centre, but still have the potential to suit your future lifestyle.
- If you want to live close to the heart of town, look for a small property that can be rented out later. This is beneficial for when you build up equity and savings, and are able to leverage into a second home.
- Proximity to shops, transport and lifestyle facilities (such as schools) makes a property more appealing to tenants.
- Try to pool resources with a friend or relative in order to purchase your first home.*
* However, you should always draw up a legally binding agreement to deal with potential disagreements with co-purchasers. For example, issues include what will happen if, one co-owner wants to sell and the other does not; if one partner stops paying their share of the mortgage; or even how to deal with renovation issues.
Remember if one party defaults on their half of the loan, the other one will usually be liable for the entire repayment – seek legal advice before signing any contracts.