If you are tired of your landlord not fixing things or your being forced to move out because your landlord is selling again you’ve come to the conclusion that it’s high-time to get into the property market. Here’s a checklist of what you need to consider when buying your first home.
When applying for a loan, a bank will lend you 80% of the property value you would like to purchase.
If you have less savings and need to borrow more money, there is an option of mortgage insurance.
Normally this will only give you an additional 5% to 10% additional borrowing capacity.
The cost of mortgage insurance can be sky high, up to $15,000 in fees, depending on how much money you need.
Home loan pre-approval.
Speak to a mortgage broker to work out your borrowing capacity. Mortgage brokers have access to hundreds of different loan products and banks around Australia.
A good mortgage broker can work out your best needs and match a loan that suits your lifestyle requirements.
One of the biggest benefits of using a broker, if finance is tight, the broker will know which bank is more flexible when it comes to loan approval.
The best part of hiring a mortgage broker is their fees and commissions are paid by the bank once the property is purchased. Hence the buyer pays nothing up-front.
Once you have loan pre-approval in place, speak to a buyer’s agent to discuss your needs. A buyer’s agent can save you tens of thousands of dollars when negotiating a house and also save you a lot of time.
To understand what a buyers agent does, think of how a real estate agent represents the best interest of the property seller working hard to get the sharpest deal for their client.
In the same way, a buyer’s agent works for the best outcome for the property buyer. They can source property that is on and off market then negotiate a great price.
Is the building and roof structurally sound?
You can speak to a family member that have some sort of trades experience or hire a building and pest inspector. They cost around $600 and will provide you details of what needs to be focused on with regards to long term maintenance and repairs.
Speak to a property conveyancer.
Their job is to look after the legal side of buying a property. They are your communication piece between yourself and the seller’s legal representative.
They main aspects of their job is to:
* Review contracts prior to you signing.
* Make sure all parties fulfill their end of the contract of sale.
* Help with legal proceedings if something goes wrong.
* Make sure your funds are paid to the correct parties.
* Help organize settlement of the property.
The process of buying a property can be difficult, even stressful at times. If you have the right people in your corner, the decision-making process can be a good experience as you avoiding the mistakes a typical homebuyers makes.
About the Author.
Mark Ribarsky is the founder of Wise Real Estate Advice & Property Managers Melb.
He is an experienced residential property developer, a fully licensed real estate agent, a buyer’s agent and property manager.