4 Must-Do’s Before Buying A Home
Buying a house is not a cakewalk. You need to put some serious thought into what you’re buying to make the right purchase. Below certain things are given that you should consider:
- Know The Motivation For Buying
Keep in mind the things that encourage you to pursue buying a home. Whether you are tired of paying rent or you want to raise your family, you should have a clear picture of it. Probably, home is going to be your largest purchase that you will make in your lifetime. Thus, make the decision that can give you long-term benefits.
Buying a home has many lifestyle advantages that you can’t have in a rented house. However, if it is difficult to set down roots in any one place then renting is a better option to move around easily. Therefore, while making the final decision, consider your lifestyle, long-term goals, and financial situation.
- Decide The Location
While deciding the location for your house, look at the facilities such as education, transport system, shopping malls, cafes and more. You should try to consider all of these before buying to make the right purchase.
For investment property, prefer to buy near the institutions, local universities, and public transport to attract young professionals as your potential tenants.
- Know How Much You Can Afford
Before you start searching for a house, know how much you can afford. Setting a strict price limit will help you to buy a house within your budget.
Even if you are applying for a home loan in Australia, you need to have a house deposit of at least 20%. Otherwise, if you don’t have a house deposit of 20% then you may have to pay for Lenders Mortgage Insurance (LMI). Search for the house options that are attainable for you.
Furthermore, know your borrowing power by assessing factors such as your income and expenses. The lenders can be willing to lend you up to a certain amount but borrow that you can realistically afford. Get an estimate of the monthly repayment amount and make sure it should not be over 30% of your disposable income to avoid mortgage stress.
You also need to consider the additional home buying cost such as title searches, pest and property inspections, stamp duty, application fees, valuation fee and conveyancing costs in Australia.
- Search For A Good Value Home Loan
Research the market to find the ideal home loan in terms of interest rate and tenure. Choosing a good value home loan is imperative as it can save your hundreds of thousands of dollars. Thus, take the time out to find the best mortgage lender in Australia. Get your relevant documents on hand and ready to show them to your prospective lender.
Negotiate a good price for a home loan. You can always ask for advice from a mortgage broker if you aren’t comfortable doing the negotiation yourself.
No matter what is the purpose of buying a home, never rush the decision. Follow the above-mentioned tips to make sure the whole process is as painless as possible.