6 Common Mistakes Home Buyers Should Avoid
Buying a home is the largest financial transaction and full of complexities. Many times, homebuyers fail to make a good purchase decision.
Given below are some of the common mistakes that homebuyers usually make:
- Not having any guarantor or a deposit
While applying for a home loan in Australia, you should have a minimum 5% deposit of the property value. You should start saving the amount 3-6 months prior.
If you are a first-time homebuyer in Australia then you are entitled to a base amount of $15,000 (NSW) as a help in the purchase of your first home. Otherwise, you can ask your mother and father to act as guarantor, if you have no deposit.
- Not consulting a mortgage broker
Mortgage brokers specialize in negotiating the interest rates on your behalf. They usually have access to lenders, major banks and have in-depth knowledge of the lending policies. Thus, they can help you to find the appropriate borrowing options.
- Not doing your homework
Before you step out to find the property, you should do a prior research to make an informed decision. Explore the internet and get the reliable property data. If you have finalized the area where you want to live, keep a regular check on new infrastructure projects and property developments across the area.
- Not borrowing up to your limit
If the bank allows you to borrow up to $ 2 million, it doesn’t mean you should borrow this much. Consider your budget, lifestyle, short and long-term plans and borrow accordingly. Borrowing more up to your limit can put you into the financial hardship.
- Not estimating the property cost
Many homebuyers only save 5% of the property value to pay as the deposit to the lender. Well, first-time homebuyers do not realize that at least an additional 5% is required to cover mortgage registration, transfer fee, stamp duty, loan application fees and more. Thus, while estimating the prior cost, consider the additional factors and start saving accordingly.
- Not choosing a conveyancer
When it comes to signing the contract of sale, it is crucial to take legal advice. Usually, the real estate agents force the homebuyers to sign the contracts to get assured. Choose a conveyancer to take conveyancing services in Melbourne. This will help you to understand the contract before signing it and help you to find the best possible home buying option in Australia.
Thus, if you are planning to buy your home in Australia then avoid the above common mistakes to make a good purchase decision.