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Ready to buy your first home? Here’s how to set yourself up for success

Buying your first home is a big step. We’ve even heard it compared to training for a marathon. 

But just like training for a big event, the better prepared you are, the smoother you’ll go. And there’s no need to “train” alone – we can help you find the most appropriate loan for your circumstances and guide you through the entire buying process. We’ve been doing it for over 10 years now, so we really know how to “keep buyers on track”.

With that in mind, here’s our (almost) jargon-free guide to the steps you can take now to put yourself in a better position when it comes time to borrow. 

1. Know where your money’s going

Before any lender gives you the green light, they’ll want to see how you manage your money. That means looking at your spending habits, your savings, and whether you’re “living within your means”.

A good first step is to review your spending from the last few months to see how much is going out each month and where, if possible, this could be reduced. You don’t need to start eating two-minute noodles every night, but taking note on where your spending habits lie will definitely help during our strategy discussions, and assist in determining what your ongoing spending might be once you do purchase your first home.

Getting a handle on your day-to-day spending helps in two ways:

•    It can free up money for savings.

•    It shows lenders you’re in control of your finances.

2. Start saving (if you haven’t already)

It may be obvious, but it’s also one of the most important things you can do. The more you can save for your deposit, the more options you’ll have when it comes to loans. The lower the loan to value percentage (what we call the LVR), the more options you have for competitive interest rates and lender options.

Being able to show regular savings gives lenders further confidence that you are able to manage your future monthly home loan repayments.

Tip: Make it automatic. Set up a direct debit that moves money into a savings account each pay day and then try not to touch it. Even if it starts with as little as $100 per month, it can all add up in the long run and get you into the habit of saving.

3. Checking your credit report

Your credit history report gives lenders a peek into your financial history. If you’ve got a good record – no missed car lease payments, no defaults – it’ll open more lender doors and help your chances of getting approved.

Sky Blue Finance can run a free credit report for you to make sure all is looking great. And if by chance there are any issues, we can tackle these early and get them sorted out before we submit an application. That way, when you do apply for your loan, the lender sees a nice and clear credit history report.

4. Avoid taking on new debts

Now’s not the time to sign up for a new credit card or car loan. Extra debts can lower how much you’re able to borrow – and sometimes raise unnecessary red flags with lenders.

If you’ve already got a few debts hanging around – maybe a personal loan or an unpaid credit card balance – it’s a good idea to start paying those down. Even chipping away in small amounts makes a difference.

5. Learn what help may be out there

There are several state and federal government schemes and grants designed to help first home buyers. 

You might be eligible for things like:

•    First Home Owner Grant (FHOG)

•    First Home Guarantee

•    Stamp duty concessions or exemptions

•    Super Saver Scheme

These could save you thousands or help you buy sooner than you thought.

Not sure which ones might apply to you? We can look at your circumstances and advise you on your options and what you may be eligible for.

6. Don’t try to do it all alone

This is a big one. There’s a lot of noise out there, and a lot of one-size-fits-all advice. But the truth is, everyone’s situation is different. What works for your best mate might not work for you.

An experienced mortgage adviser can walk you through your options, answer your questions and help you make sense of the fine print. More importantly, they can help you figure out what’s realistic – for your budget, your lifestyle and your goals.

That’s something Sky Blue Finance has done for many, many first-time home buyers. If you’re looking for honest, straightforward advice and expert support, get in touch with founder Peter Kennedy today.

📞 Call Peter on 0414 602 491
📧 Email Peter at info@skybluefinance.com.au

Note: The above information is general in nature and does not constitute personal financial advice. It has been prepared without taking your unique objectives, financial situation or needs into account. You should seek your own independent advice as to whether or not this information is appropriate for you.

Image: Ketut Subiyanto via Pexels