When you’re buying a home there are a few things that you need to consider so that you get the best bang for your buck.
First of all, you need to look at the prices. Are you buying because you genuinely want to or are you buying because of hype? Of course it’s hard to predict property prices, however when you do buy you really need to weigh up if your budget can sustain the mortgage repayments rather than buying because you are worried about the market. You should only buy if you can afford to.
To determine that, we recommend that you use a mortgage calculator to figure out if you can afford the repayments. It’s always best to calculate your theoretical payments based on the higher end. If the interest rate is 5%, then we recommend that you calculate your repayments on 8% to allow for fluctuations in the market.
Interest rates are determined by credit scores, and the worse your credit score the higher your rate. It’s best to spend at least a year or two saving, and building up your credit score prior to applying for a mortgage. That will put you in a good position to get the best mortgage rate possible.
To avoid disappointment, once you know your credit score is up to scratch, apply for a pre approved mortgage. That will give you the chance to look at properties safe in the knowledge that you have the finance available to make the purchase. It will prevent disappointment at auction and allow you to comfortably bid.
When you are looking, and you know your price range and your total budget, scour the neighbourhoods that you’d consider living in. Work out if you could see yourself living in that neighbourhood. Find out the amenities. Determine if the neighbourhood will suit your lifestyle. There would be nothing worse than buying a home and then later discovering that it’s not right for you. Take photos during your hunt so you can refer back to them and aren’t caught out making an impulse decision.
With these tips you should find it easy to locate your ideal home and will be in a position to snap it up when you do.
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