There are a few things that have the same amount of financial responsibility as the first mortgage we take out shops for sale in Islamabad. This is a stressful time for buyers who are their first and at times, the process could be challenging.

For your assistance, we've provided 8 steps to buying your first house to provide you with an idea of what's coming. However, nothing will substitute the importance of finding a mortgage professional you trust to help you through the process.

Step 1: Save your deposit

Before you start looking for your first home, it is important to be financially prepared by saving a deposit. In general, taking 10% off the value of the first house is a great goal because it is in line with the requirements of most lenders. The ideal is that that 10% is saved over a minimum period of 3 months . This is known as "genuine savings'. Announcing to lenders that you are able to consistently save indicates they are trusting you to be more punctual with your loan repayments.

That 10% is divided into 1) the deposit you pay and 2) associated costs. One of the largest costs is stamp duty along with legal costs as well as strata and building report expenses.

Step 2: Establish your capacity

It's now time to figure out exactly the amount a lender is willing to give you, and also the amount you'll be able to pay back. Considerations for financial considerations include how much you are paid, how much debt you're in, your living expenses, your assets and more.

It's also time to research what incentives are available for first time home customers in your particular state. Based on the price of your first home, stamp duty might be waived or discounted along with possible first-home owner grants.

3. Select your lender and the loan product

This is a pretty big step. The choice of your lender and loan you prefer is a big choice. Be aware that choosing the right loan isn't just about the rate. Additional factors like whether there is a charge to repay an entire loan, or if the rate is fixed for a certain period or if there are offset accounts, are all vital. And sometimes a lower rate could give you all the additional features you want.

Step 4: Get pre-approval

The pre-approval you receive for your home loan indicates that your lender has given you an "thumbs-up" conditional on your house loan. This means you're now able to look around for that dream home secure in the knowledge of how much you are able to spend. The ideal pre-approval is one where the lender has proof of your income, debts and other financial information because this is the most secure.

A pre-approval of a home loan usually is between 3 and 6 months. Therefore, it means you have an established budget when you're searching for the home you'd like to buy. This will put you in a more advantageous position for negotiations on the price, which is vital for those who are considering purchasing auction.

Once you've located the property you wish to purchase, the lender will be interested in knowing whether there's anything significant or significant that has changed since that time, like switching jobs.

Phase 5: Offer and purchase the house

So, you've found that home you've been looking for - yay! It's time to put in an offer and hopefully have an acceptance from the vendor. One of the best tips for this point is to conduct an inspection prior to purchase, including a pest and building inspection which can be priced at upwards of $500. I know it sounds pricey, but it is an investment that could make you save thousands in the long run.

After you've had your pest and building inspection completed, it's time to hone your negotiations skills and secure your home at a cost that you can pay for (enter the pre-approval!)

Step 6 6. Sign or exchange contract

If the offer is accepted after which contracts are completed and exchanged. This is typically the time to receive you final loan approval and organise your side of the deal. It is also the time where you make your payment for the deposit you have made on the property. A majority of buyers hire lawyers or conveyancers to take care of the transfer of the property and organise an agreement directly with their lender, as per the settlement date on the contract of sale. Once the settlement is complete the solicitor needs to transfer the name on the property to yourself (the buyers).

Step 7: Cooling off

There's a to rescind your decision in the event that you decide to change your mind and back out of the purchase. This time period is intended to allow the buyer an chance to have any additional inspections done on the property in order to verify that their decision to buy the property was the right choice. If you cancel, you could lose a portion of the deposit. If you have bought at auction though you don't have the option of reselling - auction purchases are irrevocable!

Each state differs on its cooling off periods and timings which is why it's crucial to talk to your realtor or conveyancer.

Step 8: Settlement

This is where the fun begins and settlement is the moment when the keys are handed over to you and you become the official owner of the property! Settlement typically occurs between four and six weeks after when contracts are exchanged and is when the final balance of the purchase price is paid to the seller. You are entitled to inspect the property prior to settlement to make sure it is in the same condition as it was when you bought it, and that there have been no major changes to the property since then.