Where to start if you want to buy a house?

Where to start if you want to buy a house?

Where to start if you want to buy a house?

The first step is to determine if you can afford a mortgage. You should sit down and thoroughly review your finances to determine how much you can afford to put towards a mortgage before you go house hunting. Consider your ideal way of life, your existing and future financial situation, and external factors like interest rates and home prices that are out of your hands.

The following buying tips will help you clear up certain doubts you may have:

1. Check if you meet the requirements

If you’re looking for a home loan in Australia, you need to be over the age of 18 and a citizen or permanent resident of Australia. Most lenders will also look at your credit history, employment status, residency and income when reviewing your home loan application. Current income will be used to calculate the maximum loan amount that can be extended to you. It also matters how long you’ve been in your present position and how stable your job is when applying for a mortgage.

2. Check your credit score

The higher your score, the better your chance of a lender approving your loan application. Some lenders service loans for average scores but at a higher interest rate. Something as simple as paying your bills on time will positively impact your score.

3. Pay off existing debts—that includes AfterPay

If you have unsecured or high-interest debt, you should consider reducing or paying it off. Focus on paying off your buy now, pay later account as soon as possible. Aim for six months’ worth of “clean” bank statements before applying for a home loan.

4. Work out your borrowing power

The average first-time home buyer’s home loan is $479,610, but how much you can borrow depends on factors like your income, expenses, and debts. Lenders may see you as a higher risk if your debt-to-income ratio is too high or you have too many expenses.

5. Take note of additional costs

There are more costs to buying a home than just the loan itself. Upfront costs can include the deposit, mortgage insurance, and stamp duty. Different states and territories have different rules on stamp duty, so it’s important to check your local rules for first-time home buyers.

6. Find the right property

Make sure you don’t forget anything by making a checklist. Things to check for during the inspection might include your wish list for the house (such as the number of bedrooms, amount of natural light, size of the garden, etc.) (e.g. fixtures, mould, water damage, ventilation). Think about how much time and money you will spend on the house by making repairs and modifications.

7. Find the right Real Estate agent

At The Avenue Property Co., we believe that selling a house or property can be stress-free and exciting when you have the right knowledge and insights and partner with a supportive real estate agent. Our main focus is on you, ensuring you’re informed every step of the way so you have complete control over your property. We know how to achieve the very best result for your property sale.

What are you waiting for to start your real estate journey? Give our team at The Avenue Property Co. a call to start today!

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