Five essential tips for first-time homebuyers

Closings costs, pre-approved mortgages, interest rates. Just the terminology of house hunting is enough to send the more seasoned homebuyer into a spin.

And if it’s your first time on the market for a home, the buying process can seem all the more daunting.

But a few simple tips can take the confusion out of the process for a first-time home buyer. Take these five steps to make sure your first house hunting experience isn’t a stressful one.

1. Save, save and save some more.

If you’ve got to this stage, then it’s likely you are already a master money saver. You already know you’ll need enough to cover the initial deposit, but there are several reasons why you should have a little extra up your sleeve. This buffer will help cover any unexpected costs in the event that interest rates rise and your mortgage repayments increase. As a guide when working out your budget, do not commit more than 30 per cent of your income to housing costs.

2. Be prepared for the inspection.

Take a digital camera along to the inspection and make plenty of notes about the property as you are walking through it. Give each property you see a rating from 1 to 10, taking into account factors like the location, your budget and whether any renovations or repairs are needed. It is likely first-time home buyers will be viewing several homes over the course of a weekend and this is a simple way of pinpointing the ones that are worth adding to your shortlist.

3. Get pre-approved for a mortgage.

One of the best first time home buyer tips to make sure you stay within your financial limits is to get pre-approved for a home loan. This shows real estate agents and vendors that you are serious about buying. It also gives you more bargaining power and prevents the deal from falling apart for financial reasons once you start negotiations on the property.

4. Pay the extra cash for an expert opinion.

If money is tight, you might be inclined to skip this step altogether. We understand the logic – you’re forking out enough just to buy the property, why spend more if you don’t absolutely need to? But in the long run, a property and pest inspection can save you both time and money, and it has the added benefit of helping you get well acquainted with your new home.

5. Check the listing price of similar homes in your area.

Never settle on the first property you inspect. Get a taste for what else is on the market in the location you have decided on, even if it’s just through a simple online search, to make sure you are getting a good deal. Browse the houses for sale on Lamudi to find out what else is out there. Your final decision should rest on a good knowledge of the local property market.