What you need to consider before buying your home
Are you in a property-buying mood? If so, you are in for an exciting time, but there’s a lot to do. Use these tips from Sydney conveyancing professionals if you feel ready to take the plunge with your first mortgage.
Are you really ready to buy your first home?
Many potential new home buyers think they have to buy their home, but it’s not mandatory. A significant portion of Australians are happy renting and will do so their entire lives. Ask yourself if you are truly ready to feel like you are buying because you have to. It’s a big commitment to tie yourself down to one location, mentally and financially.
Evaluate your finances and budget
With most mortgages requiring a 20% deposit, saving for your first home is no small feat. It’s possible to purchase with as little as a 5% deposit. The extra expense of mortgage insurance, however, can create a significant bump in your interest payments.
A larger deposit shows the financial institutions you are financially responsible for, which makes approval processes go faster. Applying for a mortgage is an involved process so make sure you have all your documents in order before heading to the bank.
Learn about mortgages and interest rates
While paying rent is relatively uncomplicated, crunching the numbers for a mortgage is more involved. Build a buffer zone into your budget. Even though you can afford repayments this year, an interest rate rise later on could push you out of your comfort zone. Each mortgage will have its own characteristics, such as fixed interest, variable interest, and penalties for early payment. Make sure you know what you are signing up for exactly.
Get a home loan pre-approval
A home loan pre-approval is an excellent strategy to streamline the buying process because you know your upper limit and can focus on areas within your budget.
Choose the right suburb for you
Consider your priorities to determine whether a suburb will make a good fit for you now and in the future. Check reviews of residents living in an area, research the public transport options, and learn about the school situation if you have or plan to have children. How accessible will your work be from your new home? Planned developments could impact the quality of life, so research what might happen around the areas you are considering.
Never skip property inspections
Cursory inspections when house hunting will never reveal enough information about the state of the property. Always get a property inspection from a qualified service before you agree to the settlement. A pest inspection will also reveal hidden problems with pests, such as termites
Need help in buying a house in Sydney or anywhere in NSW?
You can make the whole process go a lot smoother by working with an established Sydney conveyancing service. Platinum Conveyancing Services will always put your interests first and won’t add any hidden surprises. We also offer FREE contract reviews in order to alert you of potential property issues before you commit. We welcome you to contact us today.