So we came across this fantastic article published by Perth Now and couldn’t help but share this great no-nonsense guide to buying your first home.

There are some great tips down below.

If you’re struggling to get your head around all the ins and outs, don’t know who to trust or just feel the whole process is way too confusing, you’re not alone.

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We’ve teamed up with home loan experts, Aussie, to bring you this simple, straight-up guide to buying your first home.

Find yourself a good broker

Think of your mortgage broker as your home-buying super-hero. Their job is to help you cut through the noise and find a home loan that is right for your needs. They’ll explain everything, figure out what you can afford and whether you’re eligible for any government grants. Plus, your broker doesn’t charge you a fee for their services. Tip: Make sure your mortgage broker is fully accredited and industry qualified so you know you’re receiving advice you can trust.

Understand your loan

All home loans, and the repayments that you make, are based on two things: principal (the amount of money you borrow) and interest (how much you pay to borrow the money, calculated on your outstanding principal).

The interest you pay on your loan can be fixed (your repayments will stay the same for an agreed period of time, usually two, three or five years), variable (repayments will vary depending on the prevailing interest rate) or split (one part of your loan will have a fixed interest rate while the other part may fluctuate with the market).

Tip: You and your loan are probably going to be together for a while, so take the time to understand and feel comfortable with the loan you choose and the benefits each loan type will provide you.

Consider getting pre-approval

Pre-approval is in-principle (or conditional) confirmation from your lender that you’re able to borrow up to a certain amount of money. Once you know how much you can borrow, you know where you stand in the property market and you can start looking for the right place.

Tip: There are other costs you’ll need to keep in mind, including stamp duty, which is the tax charged on the purchase value of your home. Your broker will give you a clear picture of what extra costs to expect.

Find a property

Now the fun part; time to hit the open homes! Explore your full range of options and take your time to find the property you want. Once you’ve found a place you’d like to make an offer on, it’s important to have it examined by an expert to check for things like hidden pests, illegal building work and defects.

Tip: Draw up a wish list of features for your home that includes ‘must-haves’ and ‘nice-to-haves’. This will help you stay on track to find the home that’s right for you.

Find a conveyancer

A conveyancer (aka settlement agent) will guide you through the legalities of buying your property. They’ll help you understand the contract, including what you are committing to and can help amend or negotiate terms on your behalf. It’s a good idea to have the contract reviewed by your conveyancer before signing it.

Tip: Your broker might be able to put you in touch with a conveyancer.

Offer and acceptance

This is the moment you’re really committing. You’ll need to get unconditional (or formal) approval from your lender. This means the bank has everything it needs to make a final decision, and they have confirmed they’re willing to lend you the money for the property you’ve chosen. When your offer has been accepted, you and the seller will sign and exchange separate copies of the contract. You’ll need to pay a deposit (typically 10% of the purchase price) at this point. It is usually about six weeks between exchange of contracts and settlement (settlement occurs when the balance of the purchase price is paid and you’re given the keys to your home).

Tip: Your conveyancer may be able to negotiate a shorter time between exchange and settlement so you can move in sooner.

It’s yours!

Time to move in and pop the champagne!

Tip: Contact your internet provider at least three weeks before your move-in date, so you’re online as soon as you move in.

source: perthnow.com