6 THINGS YOU NEED TO KNOW BEFORE YOU BUY A HOUSE
It’s time to move on from your old dwellings and make new and better memories in a new home! It may be years since you bought a home, or it may be your first time, but it won’t hurt to be prepared, nonetheless. Here are the things you need to know and prepare when buying a home:
1. Take the spreadsheet out.
You need to know exactly how much you can spend in buying a home. How much is your budget? Are you financially fit to get a loan? Also, you need to remember:
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You need to save for a deposit. The rule of thumb for this is 20% of the property’s amount.
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Your loan can be approved faster if your credit score is high. Pay off high interest debts and have a healthy savings account. By doing this, you get a chance of getting your borrowing limit increase.
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Getting a mortgage pre-approval can save you time. This can help you get the house you really want faster. Once the seller finds out that you’re pre-approved, they see you as a serious buyer and will likely give you preference over the competition.
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Prepare for hidden costs. Keep in mind that you need to spend for conveyancing fees, agent fees, inspection fees, and other costs related to closing.
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Also allow money for maintenance. Keeping your new home in top shape requires some occasional money and effort. Aside from monthly bills and loan payments, have a budget for repairs when they come up.
2. You need to work with a lot of people.
Buying a home is ultimately your venture, but you need help from numerous people to actually achieve it. You will meet these people along the way:
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Buying agent. If you’re hunting for the perfect home, a buyer’s agent (or a knowledgeable real estate agent) can make the process easier, navigating the competitive industry and choosing homes that fit your needs and budget. Your agent should be knowledgeable in your desired area, be a good negotiator, and a transparent person.
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Conveyancer. They will handle the legal matters in buying a house. Reading contracts and making sure that they’re in your best interests are their job.
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Home Inspector. They are the ones who will make sure the house you want is in good condition! You don’t have to have one of these, but it can be a great asset.
3. Organise paperwork.
There are different documents you’ll need to facilitate the process. The most important ones are:
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Mortgage documents. This is the paperwork your conveyancer will need to submit to your lender. This includes documents with your personal information, employment history, proof of identification, credit and bank statements, etc.
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Contract. This is the document that details the property information. In the contract, the settlement date should also be indicated. Aside from these details, the contract also includes documents such as Certificate of Title, land plan, and zoning certificate.
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Land transfer. This is the document drawn up by your conveyancer, finalising the settlement and proving the property is indeed yours.
4. What are your priorities?
You need to know what exactly you want from your house. Do you want it small? With a large yard? Do you want it near or far from the CBD? Is your desired area near your work? Near a school for the kids? Knowing your priorities will make it easier for you to narrow down your choices.
5. How do you pick the best home for you?
Aside from a house’s looks and size, you should consider the following:
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Location. Where do you want to live? Closer to the city, or in the suburbs? Close to water? What schools?
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Safety of the area. Check the crime rates and the type of neighbours you will have if you live in the area. What’s the point of having a beautiful home if you don’t feel safe in it?
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Structure. If you have your eyes in a home already, hire an inspector to thoroughly check the house to see if it’s structurally sound, especially the foundation, plumbing, and the wiring.
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Future building plans. Check in the local office for future building plans. For example, let’s say you bought a home in a quiet neighbourhood and love the calm atmosphere. But you didn’t know that a mall is about to be built there! You might not like it when there’s a lot of people on the streets as it may affect your peaceful environment. This is just one example but keep an eye out for potential developments.
6. Head over heart, all the way.
Don’t let your emotions get in the way of better judgment. Sometimes, you could get so excited over a beautiful garden or a large bath that you don’t see that the house is overpriced or needs lots of repairs.
Buying a house, especially if it’s your first time, may be an uncharted territory for you. Taking the time to be prepared is incredibly important before you buy this huge investment! If you need more guidance in buying the best home for you, we are very willing to lend a helping hand. Send us a message on social media or call us any time on 0432 034 886.
