Planning a budget ensures that you know how much you can afford for your first home, and helps you to plan for the extra costs too such as legal fees and moving costs. Make sure you include a buffer, so if interest rates go up you can afford the extra repayments.

Decide on your limits

Do you need four bedrooms? It is really necessary to have brand new furniture? For your first home, you may have to re-consider your needs and wants. It is important to borrow within your limits, and sometimes this means readjusting your property ideals.

Apply for the First Home Owners Grant.

Check how much you are eligible for with the First Home Owners Grant.

Check out the Stamp Duty

Stamp Duty charges vary from state to state and new laws have been introduced regarding stamp duty on new and existing homes.

Avoid other forms of debt

Credit cards, car loans, store cards… they are all debts, and they all affect your credit score. They also limit your ability to pay off your home loan.

The bigger the deposit the better

The bigger deposit you have, the less you borrow. Borrowing 100 per cent because you do not have a deposit saved will cost you much more in interest over the years.

Get advice from a mortgage broker, lawyer or an accountant.

Mortgage brokers understand the property market and can assist to not only find you a great home loan, but can also get you fast approval and help with the paperwork. A mortgage broker helps you from start to finish, saving you a lot of time and effort.

Is the property sound?

Before you sign a contract it is advisable to have the house inspected for defects and problems.

Home and Contents Insurance

Home and contents insurance provides financial protection against damage to, or the loss of, your home and contents. Having proper insurance means that should there be major damage or complete loss of your home you can get repairs or replacements easily.

Find Your Perfect Home

Making the selection when searching for your first home can prove difficult. Take a digital camera, make notes of unusual features, colours and design elements and consider whether you like the location. Ask to see your favourite properties a second time. If you are really keen on a property, call the agent to double-check that an offer hasn't come in, and to find out more about why the owner is selling.

Source: www.firsthomegrants. com.au - Tips for first home buyers.