Today’s post is from guest blogger, Mortgage Choice. We hope you enjoy their tips for what to look out for when buying a new home!
If you’re shopping for your first home in Perth, you know that the hot real estate market has priced houses out of the reach of many buyers. However, people who research current buying trends in the city can still achieve their goal of becoming a homeowner. Here are 10 tips for Perth first home buyers.
- Save as much as you can before you start your search. While down payments are hovering under the 20 percent mark for many buyers, it is recommended that you still try to reach this target. Putting at least 20 percent down lets you avoid the expense of mortgage insurance.
- Find out how much you can expect to borrow. Going through the pre-approval process will give you an accurate picture of how much lenders will be willing to offer when it comes time to apply for a mortgage.
- Be aware that the amount that you are pre-approved to borrow should not necessarily dictate your budget. Only you can truly know how comfortable you will be with a certain monthly mortgage payment. Review your finances to determine how much you can pay each month without negatively impacting your lifestyle.
- Factor in additional expenses like stamp duty, inspection fees and closing costs.
- Prioritise location before you start looking. There are over 50 suburbs surrounding Perth. With the median price having reached $550,000 in March, it isn’t always easy to find a great property in a convenient location on a tight budget. Consulting with a real estate professional is recommended when you have so much area to cover.
- Make a list of home features that you would like before you start shopping. A consultant can help you find homes that have these features. The high cost of housing in Perth means that you should be flexible on these items. Consider looking at homes that could have specific features added later to save money.
- Get the best deal on a mortgage by consulting with a mortgage broker. These professionals are able to negotiate lower rates and fees with lenders based on the relationships that they have established with these banks.
- Be prepared to make an offer quickly when looking at homes. Perth is a hot spot for both first home buyers and property investors, so the best homes tend to be sold very quickly. You have to have your finances in order so you can be ready to offer as soon as you realise that you’ve found the house you want to call home.
- Buyers who make offers on homes in Perth must go through with the sale unless the seller does not meet the conditions of the offer. This means that you should be certain about your desire to purchase a home before making an offer.
- Be sure that your current housing situation is stable enough for you to wait through the settlement process. It can take six or more weeks for settlement on a home to occur, and you don’t want to be left without a place to live during the transition.
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