Home Buyer’s Checklist

Buying your home is likely to be one of the largest purchases that you will ever make in your life, and if done properly, it could reap in the rewards over the coming years. However, before you buy your next home, here are some key points you should take into consideration.

The first thing you should do is write down exactly what you are looking for in your next home. This should include how many bedrooms, local amenities, transport, schools and location. This will help you determine where you want to live and your affordable budget.

Lender or Broker?

Now you’re ready to find a lender or a broker. There are so many different lenders or brokers in the market it can sometimes be difficult to decide which path to go down. A lender is the one who provides the money to the borrower, whilst a broker is an independent contractor that does not lend money, but instead offers a variety of loan products of multiple lenders.

A mortgage broker specialises in home loans and will help you understand your borrowing power and come up with the solution to meet your budget requirements. Banks will not always give you the best deal so it can be in your best interest to choose an independent broker over a lender.

3 Key Things to Remember

1) What is the maximum amount I can borrow?

• Depends on your current financial position which takes into account your income, financial commitments and how much deposit you have already saved up.
• In some cases you can borrow up to 95% of the property value.
• Many banks will charge extra for loans over 80%, and could even charge a higher interest rate if you have existing debts like credit cards.
• If you do have debt, then it’s best to remove all debt first.

2) Choose your Budget

• Determine what budget you are able to afford.
• Inspect as many similar properties at similar pricing.
• Research the local area you are looking to buy in.
• Get expert advice on property values and outlook for the area.

3) Other costs to think about

• Stamp Duty
• Mortgage Insurance
• Home Insurance
• Solicitor/Conveyancer Fees
• Building/Pest Inspection