If you are your partner are ready to get your foot on that bottom rung of the property ladder, it can seem like an epic ordeal to navigate your way through the complex process. This is perfectly natural, of course, and here are a few tips to help you become a proud homeowner.
- Mortgage Pre-Approval – It is pointless looking at properties until you have a home loan pre-approval; the lender approves the borrower based on the given information. Why is this necessary, you might ask; look at it from the seller’s perspective, you would only want to talk to people who have the money to buy the property and for most people, a home loan is the only way. This is easy enough; simply contact an online mortgage broker and after answering a few questions, you will find out if your joint income is adequate (a good credit score helps). Once you have an agreement from a lender, you can begin to look at houses and make an offer when you find what you are looking for.
- Check for Government Assistance – The chances are that you will be exempt from paying stamp duty on your first real estate purchase, providing the value of the property does not exceed a specific amount and it is purely for residential purposes. Talk to a leading law firm like CK Lawyers, conveyance solicitors with a lot of experience who can help you to find out what you are eligible for, in terms of government assistance.
- Clear Existing Debt – This should be done prior to seeking home loan approval; any outstanding credit card bills and any debt that you may be paying a little per month, should be cleared (take out a personal loan if need be). Your credit score is one of the variables the lender considers when a person applies for a property loan, so you want it be as healthy as possible.
- Crunch the Numbers – Buying a home is a costly business; aside from the deposit, there are legal & conveyancing fees, not to mention the land and building surveys that need to be carried out. Let’s not forget the relocation cost and all the fixtures and fittings for the new home. It is essential that you know exactly how much the purchase is going to cost you before you make any commitments.
We hope that the above advice helps you to successfully navigate your way through the maze of property ownership and you can start the next exciting chapter of your life.