For most people buying a Home is one of the largest purchase decisions you will make with many decisions involved.
The House
- Where do I want to live ?
- What features do I need (Old – New, House, Unit or Apartment, bedrooms, kitchen, bathrooms, garaging, section)
- Other features – Gas or Electricity, Fenced, Indoor-Outdoor, Heating, Sun in relation to the property, gardens, Hillside or flat, style
This is often the biggest hurdle to overcome – Finding the property that ticks ALL your boxes and within your budget.
Obtaining a Home Loan is the next step. Bank’s and Lenders look principally at your ability to repay. This is based on how much you earn. They then consider your deposit (aka equity) and lastly the value of the property you are wanting to buy. They will ask for confirmation of your income and your Bank Statements for the last 3 months. This gives them a good picture of your spending behaviour and affordability.
Who else is involved;
Finance Broker – Your finance broker will assess your ability to borrow and service a home loan and will advise which providers to consider based on their differing lending policies. They will indicate borrowing ceilings so when you are looking at properties you will know if it is within your budget.
Real Estate Agent – Real Estate Agents work for the vendors (sellers). They have different types of agreements with the property sellers – Sole agency ; is where the property is listed just with that company or General agency ; where it is listed with a number of companies.
Lawyer – Their job is to protect you in the transaction, checking contracts, making sure the properties Title is in order and the appropriates consents are held. They also do the legal work transferring the property to your name look after the payment for the property on your behalf.
For First Home Buyers, the first thing is to talk with your finance broker. They are independent and will “hold your hand” through the process.
