Buying a house is a huge investment. So it’s important to be ready for the big decision before you dive into the world of real estate to find a house. Take some time educating yourself about different mortgage options in the market, about how to maintain a good credit score, and be prepared for other requirements of buying a house.
In order to assist, we’ve compiled six things you need to do before making a decision to buy.
Build a Strong Credit History
Ensure your credit history it is in the green so that you can secure a home loan on good credit terms. Try to keep your credit score as high as possible, because it will keep your monthly payments down. If, for example, your credit score is below 660, you may have to pay a higher down payment or bear a fee. But with a score of 700 and above, you can secure a good deal along with reasonable interest rates.
Get your free credit report to see if there are any unfair penalties for any other already settled debt obligations.
Assess Your Affordability
There are a number of ways to find out what you can afford, and Hunter Galloway are able to assist you with a detailed budget plan in order to understand this.
Two things you have to keep in mind while calculating mortgage payments include:
- Expected price you are willing to pay
- Expenses, such as utilities, insurance, and taxes.
This will enable you to plan your finance efficiently and make the repayments on time.
Start saving at least a year or two before you start hunting for a house so that you have a large deposit ready to go.
Maintain a Healthy Savings Account
When you start saving money, keep in mind your long-term goals and life after the deposit. It’s important to maintain a healthy savings account because a lender always wants to see whether you are financially strong or not. You will be reviewed to see if you’re living paycheck to paycheck, as in order to maintain it, extra costs involved in repairs and maintenance of the house will come up.
Get Ready for the Mortgage
You must be financially ready to take on a mortgage. This can be done through planning and a clear understanding of costs and processes involved. Hunter Galloway will educate you about this on your home loan journey and help you understand the money you need in order to qualify for a home loan.
Buy What You Want
When buying, it’s important not to just settle for the first property that fits your criteria. Thoroughly inspect the house to see if it is in line with your needs. Get a second opinion and ensure that you have all of your required inspections completed, take a step back, evaluate your options and then make a decision.
Chat to Hunter Galloway about your financing options now on 1300 088 065 or email Nathan.Vecchio@HunterGalloway.com.au