You’ve made up your mind and you’re now ready to make that big step: buying your first home. It’s one of the most important and expensive decisions you’re ever going to make in your entire life, so you’ll need to prepare yourself for it. It doesn’t really matter why you’ve decided to do this—whether it’s because you want to take advantage of government programs, or you simply need the space for all the pets you want—but it’s important to understand each step of the process so you can make confident and smart choices before signing any contracts. Here’s some great advice from the experts of Location Real Estate.
#1: Check if your finances are in order.
Purchasing a property requires you to make a long-term commitment, so you need to get yourself financially ready. Go over your income, debts, expenses, and savings to check if you can afford to sink a large chunk of your money into a house for a long period of time. You should also assess the stability of your career and money-making potential.
#2: Set a budget and save up for your house deposit.
Once you’ve got a clearer view of your financial capability, determine how much you can afford to save for your deposit by setting a budget. Then, do your research and start looking around to check house prices so you’ll have a better idea of how much it’s going to cost you and what savings goal you need to work towards. It’s a good idea to save up to 20% of the purchase price, plus a few extra to cover any buying costs.
#3: Figure out what you can afford to loan or borrow.
The amount that you can loan for a house purchase depends on your specific situation, and it can be influenced by your income, your house deposit, and your credit score. You need to be realistic about what you can actually afford, and you need to plan for the future by including potential interest rate increases in your calculations.
#4: Find the best rates for home loans you’re eligible for.
The interest rate of a mortgage or home loan is a crucial piece to consider since you’ll be taking on a long-term debt when buying a house. Contact different lenders and compare their rates since even a small difference can add up over time or save you a lot of money.
#5: Start your search for your new home.
It’s important to strike a balance between what you can realistically afford and the type of property you want to live in. Make a list of your non-negotiable must-haves like property size, location, transport options, etc. This part of the process can take up a lot of time and cause a lot of confusion, so get the help of professionals as you do your search.
Contact Location Real Estate today to engage with Sutherland Shire real estate experts who can provide you with personalised service and unparalleled commitment in your property search.
