Before Buying a Home.
Buying a home or property is a life-changing event. It’s the start of a significant long-term commitment. Do your homework and decide if this is the right time to enter into the property market. Prepare yourself by doing a credit check and applying for a pre-qualified home loan. There are some point to consider and here is what you need to know when you are about to buy a property.
The location on the property is one of the most important decision when you are buying a home. A good location can ensure that your investment derives future value for you in the long term. Keep in mind that homes in areas with day-to-day amenities such as shopping malls, schools or hospitals will increase the value of that home in the future.
Owning a property is a long-term commitment – you need to keep all costs involved in mind. Start by working out on how much you can afford. If you are a first-time buyer, aim to save a deposit or at least 10% of the total value of the property to reduce the total cost over the term of the loan. A deposit is very important as it gives potential home buyers the boost they need when applying for a home loan. If you have a deposit to put down, the Banks will take this into account and your affordability score will rise.
- Banking Partner:
Choosing the right banking partner is vital. As a first-time buyer, consider where you are likely to get a good client experience, as well as value for your money based on the repayment interest rate offered to you.
- Apply for a Pre-qualified Home Loan
Being pre-qualified for a home loan is a vital step as it will confirm the bond amount for which you will be able to qualify. This can be q guideline to be used when house hunting. There are two ways in which you can apply for a pre-qualified home loan. You can go to the Bank directly, or you can use a mortgage originator. What a mortgage originator does they will help you to apply for a bond at multiple lenders, giving you the freedom to compare quotes, whereas your private bank will evaluate your existing relationship with them to determine your loan rate.
- Check Your Credit Profile
Working towards a good credit status and knowing your credit status is very important. It can improve your chances of being approved for a home loan rather than being sent away from the Banks. If you don’t already have a credit history, meaning you don’t have any debts or credits on record, then it is advisable to open an account or apply for a credit card. Using the credit available and paying it back you can start building a reputable credit score.
Buying a home can feel overwhelming. With so many considerations to keep in mind. But with the right knowledge it can be the best life experience you make.