Buying your first home is both exciting and nerve racking. It is a major decision that takes planning and research, and careful budgeting. Here are some tips our wise buyers advocates put together to help on getting ready to buy a home.
5 Steps To Prepare You For Buying A House
1. Choose a qualified legal representative.
Choose one that is qualified in property matters. They are a wealth of important resources who will think of various things you may have otherwise overlooked like:
– Verifying all the property documents (section 32’s)
– Making sure special conditions on the contract are meet
– Ensuring settlement is a smooth process
2. Where can you afford to buy?
When determining your budget ask yourself the following questions:
1. How much can I borrow and still live comfortably?
2. Can I still live comfortably if interest rates went up by 3%
3. Do I have a backup plan if my circumstances change?
Draw up a budget with your incoming and outgoing expenses with both of the above scenarios in mind. If you’re not great with numbers a financial planner can assist. This process will give you visibility of your finances to make sure they are in order.
3. Speak to a mortgage broker.
A mortgage broker can offer you loans from all major banks with a range of products that are competitive, saving you money, versus visiting a banker who has access to only a few.
Ask questions regarding deposits, honeymoon periods, fixed vs variable, and also the option to fix a percentage and leave the rest floating
For some unbiased information on mortgage brokers visit the money smart web site which has been setup by the Australian government: www.moneysmart.gov.au
4. Get your loan pre-approved.
Once you choose a bank you will need pre-approval on a loan before bidding at auction or entering into a private treaty sale. Pre-approval generally lasts three months and will confirm how much you have to spend.
5. Learn the property market
Become a real estate expert, read up on news articles, sale prices, market conditions, attend auctions and submit offers. This knowledge can save you tens of thousands.
A popular trend is using a buyer’s agent to do all the hard work for you. A Buyer’s agents are licensed professionals who specialize in searching, locating, evaluating and negotiating the purchase of property on behalf of buyers. They do not sell real estate. They are engaged independently and paid for by the buyer to act on their behalf.