5 Things You Need to Do Before Buying

Rates on home loans are staying low, and the current market is hot! But be cautious not to rush into buying without considering the 5 things below:

1. Be realistic about what you can afford

This is something we stress to all our clients. There's no point being in your dream home if you feel sick thinking about your mortgage repayments. Rates are low at the moment so you may be able to afford to borrow more - its important then, to sit down and plan your budget to see what you'd be comfortable with repaying. Of course, talking with a trusted financial planner and mortgage broker is the best way to ensure you're sticking within a sensible budget.

2. Don't forget about additional costs

'Silent' or 'forgotten' costs often sneak up on home buyers and wreak havoc on their expected budget. Some things you need to consider are:

- Council rates

- Stamp duty

- Lenders Mortgage Insurance

- Additional Insurance (like home and contents insurance)

- Loan Fees (a broker can help you pay as little as possible in loan fees)

- Conveyancing

- Building and pest inspections

3. Research! ...and more research!

It goes without saying that research is crucial when buying a home. Aside from researching areas you'd like to live in, sale price history and suburb profiles, you'll want to look at a few other areas that will help you understand the true value of your property. These include; school zoning, future building plans, transport, access to amenities and the neighbours. Take your time, and do the groundwork and you wont regret it.

4. Negotiate

Negotiation is an important part of the property buying process; the single most important thing is to negotiate with confidence, and with solid limits. You should go in knowing what the absolute most is you will pay, and have the confidence to walk away if the figure isn't right.

5. Practice Patience

Buying property takes time and due diligence. Its important not to rush the process, and equally as important not to settle for something that isn't right for you. Obtaining pre-approval for your loan can help take some of the stress out of the process, but overall you need to go into the process prepared with the knowledge that it can be a lengthy one. Hang in there!

For expert financial and loan advice, contact us today.