Islamic Home Loans And 5 Tips For First Time Home Buyers

Post : March 15, 2022

Buying your own home for the first time can be an emotional ride and a financial challenge. This is why Islamic home loans Australia has become vital for new home buyers. However, you might feel a little lost in the process. We will provide you with a few tips to help you make sure that you're making the right decision.

Check Your Finances 

You need to ensure that you're capable of affording a home and the expenses which come along with it before you contact a property agent. So review your finances and do an audit for them. Even if you are applying for an Islamic home loan make sure to do an audit. 

  • Analyze your savings - You must have money saved that would last for at least 3-6 months once you move in. Of course, you will have money saved up for the down payment and the closing costs.  But ensure that you also have money kept aside for emergencies —loan lenders usually require documentation of your savings. 
  • Check your credit scores and debts - If you're planning on applying for Islamic home loans to purchase your house, it is advised that you settle your debts and pay your credit card bills. This will prove to be helpful with pre-approving your loan.
  • Review your expenses - Calculate your monthly expenses. This will help you realize your budget and analyze how much you can spend on your mortgage and other expenses that come along with buying a new home.

Set Your Budget Before Asking For Islamic Home Loans 

Once you have checked your finances, you can round up an approximate budget to spend on your home. We all have certain expectations on how we want our dream house to be but don't get ahead of ourselves. Always keep finance and desires in check and go for houses within your budget so that you don't later fall in trouble.

Especially if you plan to buy your house through an auction, it is no surprise how people easily lose control and go overboard with their budget limits.

Know What You're Looking For

Finding the ideal home is not an easy task. To find the ideal home, you must know what you're looking for in your dream house. 

Be it the interior, exterior, or neighbourhood in which your house is located, make sure that you can fulfill your needs and wants and are comfortable with them. 

At the end of the day, your home is where you're going to spend most of your time and live, and no one's giving you a house for free. It is your effort and money, so make sure that you are in no rush to choose your home.

Get In Touch With Property Estate Agents 

You might be a little inexperienced on the matter as it is your first time buying your own new home. This is when a real estate agent comes in handy. 

Hiring an experienced real estate agent can save you from a lot of hassle as they are well versed in the subject. 

An agent can advise you on market conditions and whether the houses you are willing to make offers on are priced right. Your agent would be able to identify potential issues with a house or neighbourhood that you were unaware of.

Although it is not entirely impossible to purchase a house independently, having an agent would do you good since you're inexperienced. After all, hiring an agent costs you nothing and helps you save time and effort. 

Get Pre-Approved For Islamic Home Loan

Getting pre-approved by your lender is the first step toward buying your new home. Once you've been pre-approved, you can decide on your budget considering your approved loan amount. 

Pre-approval helps you put aside your money worries. Now you can collectively start your house hunting process. 

Another significance of being pre-approved is that real estate agents and sellers would consider you a serious buyer and give more prominence to you and your conditions. 

We don't know about the majority, but at Afiya Financial Services, we are super concerned about your desires and, of course, FINANCE! So get in touch with us. 

We know a few tips don’t suffice for first-time homebuyers. So we have discussed more tips on Islamic home loans and first-time home buyers. If you want more information, go ahead and give it a read! 

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