Top tips for borrowers looking to enter the property market

May 20, 2014
Owen McDonald

Buying property is one of the biggest financial commitments most Australians will make. It doesn’t matter whether it’s your first, second or seventeenth purchase, you will always have some serious questions, and at times, doubts.

In an effort to make entering the property market a little less overwhelming, Mortgage Choice in West End offers the following tips.

Identify your property needs: Write down a list of features that your ideal property must have including the number of bedrooms and bathrooms you require. Once you know exactly what you are looking for, you can narrow down the list of homes you wish to inspect.

Research the market: Take the time to thoroughly research what you can get for your money in different localities by consulting with real estate agents, property advisors, reputable property websites and by attending open houses. The more time you spend doing this, the better idea you will have of the true value of a property in your chosen area.

Consider the financials: Make sure you know where you’re at financially. Create a carefully detailed budget so you truly understand your cashflow situation, can see where savings can be made (so you have more for your deposit) and get to know what repayments you can really afford. Ideally, the difference between your net income and outgoing expenses should be more than your expected mortgage repayments.

Know your limit: Loan pre-approval lets you head into the property purchase process knowing the maximum amount you have to spend on the property. This is best done through a mortgage broker, who can check your borrowing capacity across a wide number of lenders.

Explore all of your options: Do not settle for the first loan you see. Compare loans from big, small and lesser known lenders to find a financial solution that is suited your individual needs and circumstances. Did you know that different lenders can offer varied loan amounts to the same borrower? The same goes for interest rate, features, fees, accessibility and approval turnaround times. Be sure to compare your options.

For more information on entering the property market and finding the right home loan for your needs, feel free to give me a call on 0405375550.

Posted in: First home buyers

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