Five tips for buying a home
Making the decision to purchase a property is an exciting time, but it can often come with a little anxiety. Don’t stress. The process doesn’t have to be daunting. If you have a plan of attack, purchasing a property can actually be an enjoyable process.
So how should you prepare?
1. Start the savings habit early
While most lenders require a deposit of at least 5% of the property’s value, bigger is definitely better.
A larger deposit may help you to avoid costly Lenders Mortgage Insurance, which is charged when a home buyer borrows more than 80% of the property’s value. Putting a savings strategy in place early on in your financial lifecycle will make it easier to obtain finance and purchase your dream home down the track.
2. Get your finance pre-approved
When it comes to negotiation property sellers are often attracted to buyers who have pre-approved finance over those who don’t.
Loan pre-approval lets you head into the purchase process knowing the maximum amount you have to spend on the property, giving you confidence to buy at auction or negotiate on price. It also saves you from looking at places that aren’t in your price range.
Property sellers after often attracted to buyers who have pre-approved finance over those who don’t.
That said, it is important to keep in mind that pre-approved finance is typically a limited time offer and it does not lock you into a loan.