The very first time you decide to buy a home can be both extremely exciting and extremely overwhelming. There are a multitude of decisions to make and multiple open houses to tour.
There are some common errors people make that can cost them time and money.
So here are 3 top tips to help you on the road to becoming successful home owners
1. Know what you can afford to buy
Chat to your local mortgage broker. Discuss your financial goals and long term plans and when you ready, have your broker assist you in obtaining a pre-approval.
You will then be able to commence your house hunting in the neighbourhoods you can afford.
Having a fully assessed preapproval will give you the confidence that you are able to afford your home now and into the future if rates rise. Be aware that pre-qualifications are not the same as pre-approvals.
2. Know what the additional costs are
Buying a home is not only coming up with the funds to pay the deposit. There are other costs involved.
These include, building and pests, solicitors’ fees, mortgage fees and government stamp duty, home insurance as well as the moving costs.
When you have been a tenant your landlord has been responsible for the major costs around the house. As a home owner you will be responsible for your new home. A good guide, depending on the age of the property, is to put into your saving budget between 1-5% of the cost of the home each year. This will assist you when it comes to maintenance, future upgrades and emergency repairs and will reduce stress when the “unexpected” inevitably occurs.
3. Involve the professionals
It is essential to do your homework. Find the right professionals to assist you with this big decision. Lots of well-meaning relatives may want to share their advice but it is always essential to have a team of professionals helping you with this life changing commitment – this is what they do.
An experienced mortgage broker will be able to compare 100’s of different loan products and be able to assist you with what mortgage features that will work in with your financial goals. You should speak to them early. They will be aware of government grants and options to help you into your new home.
Buying your home through a reputable real estate agent will allow you to learn about the local market, potential developments in the area and the growth in real estate in the area.
Ask for a free property report to ensure you know the sale history of your property. A real estate or mortgage broker should be able to provide these to you.
A qualified building and pest inspector will provide you with a detailed report as to what you cost you could be in for. Paying for a detailed report could save you thousands.
A proficient solicitor will help the whole process run smoothly. The solicitor’s role is to perform property and title searches and review the contracts. Your mortgage broker should be liaising with your solicitor to ensure your finances are correct and on time.