Final considerations

Some of the major factors that you need to consider before buying a home are creating a budget, researching the property market, investigating fees associated with the loan and property and comparing different types of loans and lenders. Here are some great tips for first time buyers:

• Before you decide to purchase a home, start saving. The more you have put away, the less you will have to borrow and pay interest on. Even if you are not considering buying a house right at this minute, you may want one in the future.

• Add up all of the costs of the loan, including fees, the mortgage and bills associated with the home and factor them into your monthly outgoings to get an idea of what you’ll be up for.

• Try not to get too attached to one particular property – this can sometimes make people go over their budget and ultimately in more debt than they can afford.

• Remember, your circumstances can change. While you may not be sick, have children or become retrenched now, they are all future possibilities. To avoid having your home repossessed, consider looking into income protection insurance and also saving a little bit extra each month.

• If you are changing the area where you live, you may need to add in transportation costs like taxi fares, train, tram or bus tickets.

• In the case that you have any questions or doubts, you should contact either your financial adviser, accountant or lawyer.

• If your lender believes that you are not able to afford your loan, they may ask you to have someone sign onto your loan as a guarantor because you do not have enough equity or income. Unless you are absolutely sure, you should not involve family or friends because this can cause lots of strain and stress.

If you follow these tips for first time home buyers, then you may find yourself in a great situation and a very proud home owner. And always remember, if in doubt, ask for advice and clarification from the appropriate advisors.