Are You Sick of Renting and are ready to buy your own home?
Here is what you should know!
How many times have you browsed through the real estate section of the paper just to see what is out there? As a self-confessed real estate addict, I have to admit that I just love shopping for houses, whether it’s online or through open homes. But there is a big difference between browsing real estate and buying real estate. If you want to take the plunge into home ownership, then you want to be 100 percent confident that you are ready for this commitment; after all, buying a house is most likely the biggest purchase you will make. So we’ve compiled five easy questions to help you determine, Are You Ready to Buy a House?
Have You Done the Research?
There are so many home loans out there – which one will work for you? This will depend on a number of variables including how much you can pay each month, how much you are putting down for a deposit and how much you are borrowing. One of the things that you will want to consider is the interest rate compared to the length of your mortgage. Even a difference in .2 % is going to equate to thousands of dollars in savings over the years, especially if your home loan is for 15 years or longer. Taking the time to compare interest rates and benefits of each home loan will pay off in the long run.
Do You Know What You Want?
You don’t need to put an offer on a property before you compare home loans. But, it is a good idea to know what you are looking for in terms of price range, bedrooms, square meters and suburb. That way you can better identify how much you would like to borrow. So browse through the real estate section and see what’s out there. Shopping for real estate, even if you are just window shopping for now, has got to be one of the most fun things to shop for. And the more you do it, the more you will get to know the market and what you want in your dream home.
Do You Know What You Need?
A great bank can help take some of the stress out of applying for a home loan or refinancing. And it is very important to feel at ease when you are looking to buy or refinance. However, there are still certain things that you will need to supply, including proof of income, contracts of sale and the First Home Loan Grant Application Form, if applicable. Download our free Home Buyer’s Checklist to see what you will need to make the transition from ‘renter’ to ‘home owner.’
There isn’t a magic number when it comes to how much you need to put down and how much you need to save before you can buy a house. Some people are happy to only offer a 5% deposit while others would prefer to put down a little more. One thing to remember is that there are additional costs involved in buying a home, including insurance and strata fees. It is a good idea to not only save up for a deposit but also have some aside for the extra expenses.
Do You Have a Steady Income?
One of the main factors when it comes to applying for a home loan is that you are in a secure financial position. This doesn’t mean you need to be making triple digits but you will need to demonstrate proof of income, regardless of where you work, how you make your income or whether you are self employed. You can learn more about what you need when it comes to proof of income through our free Home Buyer’s Checklist.
Owning your home is one of the biggest accomplishments out there. While some people will only purchase one home in their lifetime, others may purchase dozens. But, either way, you never forget the feeling of handing over the deposit and signing the papers. So… are you ready?