Five Simple Steps for Purchasing Homes in Perth for First Home Buyers

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From the outside, the process of finding and buying your first home involves vast amounts of time, money and paperwork. If you break it down into seven simple stages, however, it is not as daunting as it initially seems. Here are seven simple steps you can follow.

Work out your budget

Unless you have significant savings, chances are you are going to have to take out a mortgage to pay for your first home. In the current mortgage market, you will require a deposit of at least 5% of a property’s value to secure a mortgage from a lender. This means that if you want to buy a $250,000 property, you will need to put down a deposit of at least $12,500.

Research your mortgage options

Once you have worked out your budget, you can start looking into your mortgage options. You can search for mortgages online, or consult with potential lenders over the phone or in person. A lender will take down some basic information and perform a credit search before coming up with an amount that it would be willing to lend you.

Find a property

If you, like many first home buyers in Perth, are in the market for a new home, you may wish to approach a specialist company such as Wow! Homes. This is often the most attractive option for first home buyers because the First Home Owner Grant for new homes is significantly larger than the grant provided for those purchasing established homes.

Apply for a mortgage

If you are taking out a mortgage to buy your first home, you will need to obtain a formal mortgage offer from your lender before you are able to sign the contract of sale. To apply for a mortgage, you will usually need to provide proof of your identity, address and income.

Complete the purchase

If your lender agrees to provide you with a mortgage, you can exchange contracts with the seller. At this stage, you will need to pay the agreed deposit. On completion day, you will need to pay the rest of the money to the seller. Once you have done this, you will be able to collect the keys to your new home.

Sources:
(First Home Owner Grant, finance.wa.gov.au)
(How much deposit do I need to buy my first home?, realestate.com.au)