Buying a home is one of the biggest financial decisions in someone’s life. This decision is a complex long-term commitment which should be based on solid information and planning. Here are some tips that will hopefully uncomplicate the process of financing your new home.
Tip #1: Set a budget
When setting a new home budget, it is wise to split the budget between upfront costs and ongoing costs. Upfront costs include the house deposit, stamp duty, legal fees, mortgage and lender fees and moving fees. Ongoing costs include interest and loan repayments, home maintenance fees, insurance costs, council rates and utility bills. Take into account all costs and ensure their accuracy to prevent financial trouble down the road.
Tip #2: Check on your current finances
Before jumping into any large purchase, especially the purchase of a home, do an in-depth analysis of your finances to determine if you can afford to buy, and if so, what kind of property and/or location you can afford. When financing your new home, take into account your current income, savings and the value of your assets as well as your debts and unpaid expenses. It is also important to consider future expenses and lifestyle changes that may affect your financial well-being. It is also imperative to keep track of external financial factors such as the interest rate, the economic climate and the general forecast of the real estate market in your prospective locations.
Tip #3: Seek professional help
Regardless of how financially and economically competent you are, it is always a good idea to consult professionals before purchasing a piece of property, even if just for a second opinion. When seeking professional help, it is important to take into account the quality and price of various professionals before fully committing to someone’s service. Property professionals with the means to assist include financial advisors, lenders, mortgage brokers, buyer agents and solicitors or conveyancers.
Tip #4: Continue saving for your home
Even if you are on track to meeting your new home budget, it is always a good idea to save some money in case something unexpected happens or you’re considering upgrading your options. There are many things you can do to save money. Consider using less electricity, water or gas to cut down on your current utility bills. Opt to eat in more often, shop a little less and if you must spend, do your research to find the best sales and bargains!
Tip #5: Find an appropriate home loan
When financing your new home, it is important to secure a good deal on a home loan. Over time, even the smallest differences in fees and interest rates will pile up. Comparing and contrasting different lenders and mortgage deals is a worthy time investment that will secure you a loan with the best features, benefits, fees and interest rates. It is also important to find out what qualities lenders are looking for to ensure that you are approved for the loan that you are after.
Whatever you are looking for in a new home, make sure to speak to our independent consultants. They are here to help you 7 days a week and assist you with all of your queries regarding the new home building process or even investment opportunities. Call them on 1800 184 284, or book a call online.