1. Do the research
Learn as much as you can about home buying and mortgage applications at the planning stage.
Look at properties for sale and properties that have been sold in the area you’re interested in to get an idea of property values.
Remember that knowledge is power and never more so than when entering the property market.Remember that knowledge is power and never more so than when entering the property market.
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2. How much you can borrow
Talk to mortgage brokers and financial institutions early on to establish how much you can afford to borrow and therefore, how much you can afford to pay for your new property.
Viewing properties outside your price range are not only a waste of time but it can make the buying experience disappointing and more stressful.
Make sure the information you give your mortgage advisor is accurate and up to date.
Without accurate information, the advisor cannot advise you correctly.
You’ll need to provide details of your income, assets and liabilities.
And don’t forget to allow for the expenses you’ll incur during the purchase process such as conveyancing, stamp duty, property inspections and removal costs.
3. Selling to buy elsewhere
Many buyers also have a property to sell. This is a familiar dilemma and a situation that needs careful handling.
Our many years of experience have shown that the most effective strategy is to sell before attempting to buy.
Buying first could place you under pressure to sell your current home quickly and achieve a lower price than you might otherwise have got.
It’s a good idea to make the sale contract on the original property dependent on you finding the new home that’s right for you.
If this sounds like you, get started by finding out how much your property is worth. From there, together we can work out what your options are.
4. Obtaining your loan
A loan pre-approval which specifies the amount you have available to spend is a powerful bargaining tool.
It allows you to act swiftly when you find a property you’re interested in which is important when there are a number of other interested parties.
The seller is more likely to favour an offer from a buyer with pre-approved finance than from those without.
Changing jobs while you’re applying for a mortgage could be a mistake because finance institutions prefer borrowers with stable employment records.
Check with your broker beforehand – all banks are different and their rules can change from week to week
5. Choosing the right property for you
- Know your budget
- Decide a location – weigh up work, lifestyle and future growth
- Research the market
- Stay focused on what matters
- Be ready to act quickly once you find the right home
This article is prepared based on general information. It does not take into account individual financial objectives or needs and is not financial product advice.