If you’re thinking of buying a home, you should be thinking about finance. Your first step is to speak to a mortgage broker and your bank. This enables you to compare options and will give you a guide about how much you can borrow, the level of the repayments and the deposit required to get you started.
Now it’s time to do the maths – working out a budget is essential. Before you make an appointment to see a lender, you need to know exactly what you earn and exactly what you spend. Only then can you work out what you can realistically afford to borrow and the cost of your mortgage repayments.
When doing the calculations remember to factor in things like Council and Water Rates, Utilities, Strata Fees (if appropriate), Insurance as well as your normal living expenses and any existing debt.
A good guide is to check your credit card and bank statements for the past year. This will provide an accurate snapshot of what you spend. It’s only then that you can work out if and where you can make savings and prepare a budget.
Sellers love a buyer with pre-approved finance. It demonstrates that you’re serious, may help you to negotiate a better price and avoids the disappointment of missing out on a property due to finance being declined.
There are costs associated with buying a home that must be included in your calculations before you make an offer. These include:
We all have technology at our fingertips so it’s no surprise that the internet is the preferred way of finding out what property is available. Real Estate websites give you a feel for the market, provide images and details of the property and importantly, a guide to the price or price range. Other options include: