Deciding to enter the property market is one of the biggest decisions you’ll ever make. You should feel proud and excited about reaching such a significant milestone! Whether you’re buying your first home or adding to an investment portfolio, there are many important factors to consider as a property owner. It’s crucial that you do as much research as possible before making any final, and long-lasting decisions. In this C&G Blog, our team of experts has compiled the most important tips and tricks of the trade to help you make the best decision possible when purchasing a property.
Use a home affordability calculator
Before you do anything, you need to make sure that you’re prepared to meet the financial obligations that purchasing property entails. While it shouldn’t be used as a definitive factor in your overall decision to buy a home, using a home affordability calculator can give you a good idea of where you are positioned financially before you make any formal contact with a lending company or a realtor. A quick Google search will bring up lots of different calculators to try; this one from Forbes will give you a good, low-pressure indicator of whether you’re ready to enter the property market.
Talk to a financial advisor
Overwhelmed? We don’t blame you! Speaking to an expert is the best that you can do to help you make the best decision. You can never be too careful - consider talking to a financial advisor to get a clear idea of whether you’re in the right position to be entering the property market or adding to your portfolio. Remember that you’re not just paying for the house! There are other hidden fees that will pop up along the way, like renovating, closing costs, home appraisal fees, moving costs, and more. Just because you’ve saved up enough to put down a deposit doesn’t always mean that you’re ready to buy.
Check your credit score
It’s so important to maintain a good credit score, mainly because it can be the deciding factor for a bank granting you a home loan. If a pattern of late payments on your credit cards appears in your credit report, it could lower your chances of getting a loan with a decent interest rate or even prevent you from getting a loan at all. Don’t panic - there are steps that you can take to get your credit score where it needs to be. If you’re not happy with your current score, it’s probably worth waiting until you can improve it so that you get the best deal on your home loan. Pay your credit card bills on time, every time - because you never know when your credit score could affect you in the future.
Get pre-approved for a mortgage
You don’t fall in love with your dream property only to get denied a home loan and have it slip away. Before you start looking at properties, it’s essential to get pre-approved for a home loan. Otherwise, you have no tangible way of knowing that you’ll be able to commit to the property you want to purchase. Getting pre-approved for a mortgage will also allow you to find the best loan possible. Each mortgage lender will evaluate your financial background to determine what size monthly payment you can realistically afford. This will help you target homes in your price range. This will put you in a position to be more realistic and less aspiration when you start to look at properties (aka the fun part!) so that you don’t get your hopes up over a property that’s out of your reach.
Find the right real estate agent
Once you’ve been pre-approved, the fun really begins. It’s time to find your dream home. Let’s go shopping! Contact us today to book your free consultation with the Bayside property experts.