It remains the single largest purchase anyone will make. Buying a house can be daunting, even if it’s not your first property purchase
There’s a lot to consider and the difference between getting it right or wrong can mean thousands of dollars.
Preparation makes all the difference.
The enjoyment of buying a home can easily be eroded by making some common mistakes. Here are some methods to ensure it goes well for you:
Get a quality pre-approval
Some lenders do not fully assess a pre-approval whereas others will. Having a fully assessed pre-approval is the gold standard to ensure you have confidence to make an offer and/or attend auctions
Take the leap
Wealth through property takes patience and time. None of us have a crystal ball and there is no precise answer on when to buy. There is a lot to be said for time in the market, as opposed to timing the market
Consider your attitudes towards risk
Would a series of interest rate increases cause you to loose sleep? Add a buffer to account for the unexpected. How much can I borrow Vs How much should I borrow. Would borrowing your maximum prevent you from enjoying other aspects of life
The banks will assess your suitability for a long using the 5 C’s of credit:
lenders will check you credit report to see whether you have a track record of paying bills on time
refers to how much you earn and what are the components of your income. Lenders may vary considerably in how they assess this element.
Is your contribution towards the purchase. The more of your own funds you are putting the stronger the proposition is for the lender.
Is the property you are putting up as security for the loan.
Are the predominant financial conditions that exist at the time of your application. These may include the property market, economic factors and interest rate environment.
Tips from homebuyers
Some of the top tips from dealing with many home buyers and feedback from our clients:
- Save as much as possible for your deposit
- Research and link in with top quality professionals: mortgage broker, conveyancer and buyers agent
- Get pre-approval, even if you aren’t sure if you are going to purchase immediately