Don’t have time to read the blog, you can listen to the podcast here…
With all the First Home Buyers I meet, there is a common theme. The theme is, they have spent the last few months (and sometimes years) doing ‘How much can I borrow’ calculators, they have spent time working though different blogs to learn what deposit they need and they even consult with family and friends to get an idea of what to do when. However, despite all of this research and investigating, they are left thinking…
How does this all piece together?
What does this mean for me?
Now What?
There is so much you need to know when you are buying your first home. Sure, there are some that take a ‘she’ll be right attitude, although this is not recommended, particularly when buying a home is one of the largest purchase most people make in their lifetime. I typically find, those clients who have put the time, and effort in to getting their head around the most important aspects of buying a home, not only make the home buying journey easier, with less stress, but they also set themselves up for future financial success. I have, in the past, seen some First Home Buyers, cost themselves thousands because they didn’t take the time to understand what they were doing
So what are the 4 proven steps to guarantee you’re buyer ready in 2020?
The truth is, your Home Buying Journey starts well before you start house hunting. In fact, your home buying journey starts, at least 12 to 24 months (or more) before you’re ready to start knocking over those #Saturdayopenhomes.
The 4 proven steps to guarantee you’re buyer ready in 2020?
- Set your Deposit Goal
- Know your Budget and actively review it
- Research and talk to the expert
- Fully Assessed Pre-approval
Step 1. Set your Deposit Goal
“Setting Goals is the first step in turning the invisible into the visible” Tony Robbins
It’s so cliche I know, but it’s true. If you have the goal of getting into your first home, then you need to set a goal around how much, of what and by when. This can help to motivate and inspire you but most of all, it will help you to know what the plan needs to be, to help you get to that goal.
The deposit goal is the best place to start… it will help you to work out how much you need to be saving between now and when you want to purchase your new home.
If you need more information on Goal Setting you can head here to read Golden Rules of Goal Setting – Five Rules to Set Yourself Up for Success.
Here are some things you will need to consider, when setting your Deposit Goal;
- What is the price range you are looking to buy for?
- How much deposit do you need to get into your home?
- What are the government costs you will need to include?
- What is the time frame you are aiming for?
- What are the other costs such as Lenders Mortgage Insurance that you need to consider?
These are just some of the questions you need to consider but if you’re reading this thinking… ‘I have no idea where to start’ then the good news is, by completing The First Home Buyers Program, you will set your own personalised Deposit Goal, which will leave you with a very clear and personalised Deposit Goal. To find out more about The First Home Buyers Program head here
Step 2. Know your Budget and actively review it
“A goal without a plan is just a wish” – Larry Elder
The next step after building your Deposit Goal is to work out what your plan of attack is going to be to help you get there. In this case, the best plan, is to set a budget and stick to it.
Much like if you set the goal to loose weight, you then need to start working on your diet and exercise to ensure you meet your weight loss goal. Your Deposit Goal is no different.
There are 7 steps to setting an effective budget, all of which I take you through in The First Home Buyers Program, and they are,
- Set the goal (the good news is, you did this in step one)
- Gather your expenses
- Record your data
- Create your Monthly living expense
- Categorise your expenses
- Adjust and trim
- Monitor and review
In The First Home Buyers Program, you will go through each step and along the way, I will teach you hints and tips to make sure you nail your budget as much as possible. I also share with you my Budgeting template to help you work out where all your money is going, and how you can adjust and trim to reach your deposit goal.
To find out more head to https://360-mortgage-solutions.teachable.com/p/the-first-home-buyer-s-program
Step 3. Research and talk to the expert
“Research is what I’m doing when I don’t know what I’m doing” – Wernher von Braun
The next step is to start researching now. The benefit of starting your research now, months before you’re ready to start house hunting, will mean when you do, you will know the questions to ask. You will have considered important things such as loan structure, signing Contracts of Sale in your State and much more.
You can start by reading more Blog articles, for example in How Much Deposit Do I Need, I talk about the ideal deposit amount and pros and cons to having less (or More).
I would also strongly recommend you talk to your Mortgage Broker at this point. Not to complete a pre-approval but as part of your research. A Mortgage Broker will be able to help you with your borrowing power, answer questions you have so far and even provide you Suburb Reports, to help you research suburbs you might like to be considering in the future.
It’s also at this time, that I often find I am able to help First Home Buyers get into the market sooner. This is because when I meet with any First time buyers, I talk about Family Guarantee https://360mortgagesolutions.com.au/family-can-help/ and I’ve lost count, with the number of first home buyer that have come back to me, not long after meeting to talk more about how their family can help.
Again to help you with your research you can join The First Home Buyers Program, it will not only provide you with a lot more information on different aspects of the home Buying Journey, but it also gives you access to the private Facebook page where you can ask more questions along the way. https://360-mortgage-solutions.teachable.com/p/the-first-home-buyer-s-program
Step 4. Fully Assessed Pre-approval
“Prepare the umbrella before it rains” – Malay Proverbs
This is the finally step, and typically comes when you are just about ready to start house hunting.
A fully assessed pre approval is all about knowing that the bank or lender you have selected, is happy to loan you the money providing they are happy with the property you choose.
It means you have the piece of mind to go into an open home knowing you can afford the property, and it also gives the vendor (person selling the home) more confidence when you put your offer in to them.
You may have noticed I said ‘fully assessed pre-approval’ to find out what the difference is between a fully assessed and a plain old pre-approval you can read this video on Fully assessed Pre-approvals…
Basically, a pre-approval is about getting all the hard work done upfront so when you do sign a Contract of sale, you are prepared and things typically go a lot smoother and faster.
I would suggest completing The First Home Buyers Program prior to doing your pre-approval, it will provide you with a list of questions to take to your broker, as well as your monthly living expense, which is a vital part of the application process these days.
In summary,
“Be strong enough to stand alone, smart enough to know when you need help, and brave enough to ask for it” – iliketoquote.com
Buying your First Home can be a stressful time, and the less prepared you are, the more likely the chance of a costly mistake. By following these 4 steps, you will set yourself up for a far more enjoyable First Home Buying experience, now and for any future purchases.
If you are truly serious about getting into your First Home in 2020, then I would strong recommend The First Home Buyers Program for you. It will take you through the above 4 steps and more, helping to ensure you are clear about where you are going, keeping you motivated and on track along the way, as well as, helping to take as much of the stress out as possible.
You can get access to the Course here.
Remember… “there’s only one thing standing in your way, so step aside” – Deyna Lee
