5 Things You Need to Know before Buying a House

Buying a home is a big deal, but that doesn’t mean you can’t do it. It can be tricky even for the most experienced real estate buyers. Here are the five facts to know before you head into the market.

1. Be Honest about Your Budget

If you can’t afford a home, you can’t afford a home. If you don’t have the money to get a home loan, you can’t get a home loan. The only exception here is if you’re interested in buying a fixer-upper, in which case you don’t need to have the total price in cash to make an offer on the home.

But you do need to be honest about the condition of the home. You won’t get a home loan for a house you can’t afford to fix.

2. Don’t Let Emotions Guide Your Decision

That dream home can be alluring, but don’t let it blind you to other aspects of the deal. Do your research and look at the facts, including what you can afford to pay in mortgage and homeowners’ insurance payments.

If you have to stretch to buy a home, it won’t be easy to keep up with your mortgage payments or your homeowner’s insurance policy. A stretch mortgage can put you in a difficult financial situation if interest rates rise or your income hits.

3. Don’t Forget about Silent Costs

Don’t forget about other costs. The closing costs on your home can be thousands of dollars if you don’t negotiate them before you sign the deal. You may also have to pay for a home inspection, an appraisal, and a professional to do the necessary repairs to make the home livable.

Be sure you have a budget in place to cover the costs of buying the home so you don’t end up in a situation where you can’t afford to buy the home you want.

4. Research about the Property Well before You Make an Offer

Research each home so you know the neighbourhood it’s in. Visit the community and talk to neighbours to see what they think of the area. It’s also a good idea to check out the school district in which the home is located. If you don’t like what you hear, move on to a different house.

Once you’ve made an offer and have bought the home, make sure you have an emergency fund to cover the cost of repairs and unexpected emergencies.

5. Get a Good Home Inspection

A good home inspection can be critical to your financial security. A home inspection will tell you about the condition of the home, including the foundation, the plumbing, the electrical work, and issues that may come up later.

A good home inspection will alert you to safety issues, like water leaks or smoke detectors with dead batteries that you’ll need to fix before moving in. The best way to avoid buyer’s remorse is to do your research, don’t let emotions blind you, and make a budget that includes all the costs and fees involved in buying a home.

Conclusion

Buying a home can be a highly emotional process, but it doesn’t have to be. Keep your emotions in check and keep the facts in mind to avoid buyer’s remorse. Before you sign the deal, remember to pay for your home inspection and make sure you have an emergency fund for the unexpected repairs and expenses that will inevitably come up. You can have the home of your dreams as long as you keep the facts in mind and plan.

Shore Financial is Australia’s #1 independent mortgage broker, helping Australians climb the property ladder with ease by simplifying the mortgage process and doing the legwork for you. Want to plan your home purchase or renovation? Use our mortgage borrowing calculator now! Call us at 1300 416 700 for any inquiries.