One of the most intimidating things about purchasing your first home is the feeling that you are entering into a huge financial commitment without a real sense of understanding of what you are actually purchasing or building.

Below are some checkpoints that you should consider before committing to that important first housing loan.

4.   Use Reputable Companies - if building your dream home, make sure that you are using a company that has a proven history of quality. Look at the quality of display homes of the same builder. Remember that your dream should match the reality.

5. Pay the Market Price / Negotiate - there are two things that need to be taken into account. Firstly, do the market research and pay what the property is worth. If you spend time looking at the area's market, you will get an understanding as to what the properties are worth. Conversely to this, if you really want the property, don't haggle your way into losing it. Have a price in mind that you are prepared to pay and stick to it.

6. Make sure that you can afford the loan that you are taking - Make sure that not only can you presently afford the housing loan that you are taking but that if rates rise or your personal situation is likely to change that the loan is still going to be affordable to you.

7. Understand the post settlement costs - have an understanding of the costs that are associated with your property such as land and water rates, insurance and strata fees.

8. Independent Inspections - Ensure that in all cases you get an independent inspection to check the structural & technical integrity of the property you are buying. Don't find mistakes after the event.