Buying Your First Home? Here's What You Need To Know! • The Naptime Reviewer

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For many people, owning a home is right up there with marriage and kids on the ‘life milestone’ list. There is something very special about becoming a homeowner for the first time, and it’s not just knowing that you’ve finally got onto the property ladder. Owning a home, rather than renting, can work out much cheaper for you, once you take away the deposit cost. Mortgage payments generally come in much cheaper than rental costs. Plus, you can decorate your home how you would like without having to worry about having $100 taken off your deposit because of a mark on the wall.

Owning your own property also means no rogue landlords paying you unexpected visits, or charging you random fees. All in all, owning your own home is pretty great! But before jumping in headfirst to making an offer, there are a number of things you need to consider.

Are you truly ready?

We know we’ve just waxed lyrical about all the amazing benefits there are to being a homeowner. But, a lot of people tend to unprepared or unaware of the responsibilities it can bring. If your home suffers any kind of damage – a burst pipe, or a damaged roof – there is no landlord to turn to who will get it fixed for you. You need to be prepared to sort out any household issues of your own accord, so consider whether that is something you can see yourself doing.

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Check your credit rating

A dodgy credit score can make it very difficult to get a mortgage, as banks or other lenders may distrust your financial abilities. Make use of a free credit check service, before you apply for a loan. You will be able to access a copy of your credit history and then you can go through it carefully, checking for any errors. Sometimes, something as simple as underpaying a cell phone bill can flag up a red mark on your credit score. Settle any unresolved payments and then contact your bank to see what they can offer you.

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Get your costs together

It isn’t just the cost of the deposit that you will need to consider when buying your first home. Sit down and try and work out what your monthly outgoings will be, including your taxes and whatever home insurance you will need. If you are not sure about how much you will pay for home insurance, visit or call a number of local estate agents to find out what their properties usually have. Whilst you are there, you can also inquire about the average cost of local homes, which should give you a clearer idea of the kind of budget you will need. You will also need to take into account other costs, such as the use of a national moving company and your bills.

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Have a backup plan

If the worst happens and you get refused a loan by all the banks, consider turning to the government. The Federal Housing Association has a scheme whereby it insures the loans of people who are finding it difficult to secure a mortgage. This generally relaxes the banks and makes them feel more comfortable about lending to you.