Buying a new home can be quite overwhelming and there are many factors to consider. Knowing how to start and where to begin the buying process can also be a little confusing.
To make things easier for you, we have put together 5 practical tips that will make your journey towards being a homeowner as smooth as possible!
1. Plan your mortgage repayments
Affordability is crucial when setting up your mortgage. Lenders often have different criteria, however try not to get caught up in this. Make sure you feel comfortable in your ability to meet loan repayments on an ongoing basis.
Having a plan that includes all your household expenses and the possible cost of your mortgage is key to budgeting. Take into account all your household and personal living expenses, rates, insurances, debt, entertainment, potential emergencies and any future holidays.
2. Always get your finance pre-approved
Pre-approval of mortgage finance occurs when a lender confirms that you may borrow up to a specified dollar amount, also known as conditional offer of finance.
Knowing exactly how much money you can borrow will give you an idea of your actual purchasing power. It will allow you to filter out properties that are not within your budget and focus your time and energy on properties that are suited to your individual circumstances.
3. Consider factors outside of location and price
You have found a house within your price range and the location isn’t too bad either, do you put in an offer straight away? Definitely not. It’s important to be 100% certain that this is the right house for you and that it meets all personal and infrastructural standards.
Do your homework. Does the house get much sunlight? Is there public transport nearby? Are there hidden damages that need repair? Or home improvements without proper council consent?. If you find a house you like, check it out on different days to see exactly what kind of neighbourhood you will be settling in.
4. Make sure you are legally protected
When putting an offer down on a property make sure you have incorporated a 5-7 day finance clause. This means if you don’t want the house anymore, something bad with the property pops up or the bank finds the house unsuitable you can legally get out of the contract.
Make sure all necessary reports and assessments are carried out on the property so you are not penalised further down the line.
5. Talk to a mortgage broker
Using a mortgage broker will save you time and take the hassle out of what is a very stressful process for most people. Mortgage brokers have a strong relationship with all major banks and is a 100% free service.
To get the best advice and financial package for your individual circumstances give Mike Whittaker a call 0800 579 324.
