Take the stress out of buying a house with these 5 things you need to know before buying a house.
Buying a house is a big decision, so don’t rush it.
There’s so much to think about when you’re buying a house. How much do you want to spend? What about finance? It can be overwhelming. Investing a little time before you start can take the stress out of buying your next house and could save you thousands. Do your research first, then dive into the real estate sites and create your home-open shopping list.
Here are the top 5 things you need to know before buying your next house.
1 – Know your needs and wants: think ahead before you buy
Deciding what you really need from your home will help you narrow your search to save you time and money. There are many small decisions that go into finding the right house for you, and these needs change over time.
Some considerations might include:
- What facilities do you need? For example, schools and access to public transport?
- What are the needs of you and your family for the next 5, 10, 20 years?
- Do you want to buy new? Are you willing to renovate?
- What are your lifestyle needs? Access to cafés and restaurants, gyms or bushwalking, cycling or access to the beach?
Setting realistic expectations around what you need from your home can help you focus your search and prevent feeling overwhelmed in a busy market.
2 – Know your budget: speak to your mortgage broker before you start looking
A mortgage broker can help you with more than just a bank loan. They understand the housing market, the buying process and can alert you to potential pitfalls.
Your mortgage broker can reduce your stress and save you money by helping you understand:
Your borrowing capacity
- The value of your deposit
- Mortgage provider requirements – savings history, employment history
- Pre-approved finance
- The best loan to suit your needs – after all, interest rates are only one consideration in choosing a home loan. Should you have a fixed or variable rate? Do you need an offset account, or a redraw facility?
Knowing all this before you start means you can look for your next house and negotiate the purchase price with confidence.
3 – Know the market: research property reports and suburb data
Arming yourself with up-to-date information could save you thousands and take the stress out of your property search. It’s not just about knowing the going rate for houses in your chosen suburb, you need to know about pricing trends, potential zoning changes or other council factors that might influence your buying decision.
Did you know that your mortgage broker has access to the latest market and suburb reports? Fox Mortgage Services are always happy to chat to you about your upcoming purchase and connect you with the information you need to find the right home at the right price.
For general information, SQM Research: Research the property market is a good source to get you started.
Being prepared with up-to-date information will reduce the stress of choosing the right property and put you in a position to negotiate a fair deal.
4 – Know your terms: engage a good settlement agent before you sign the offer document
Many buyers don’t think about their settlement agent until after they’re ready to make an offer. Often, a buyer will default to the real estate agent’s recommendation and this service may even act on behalf of both buyer and seller.
Engaging your own settlement agent before you buy will ensure complete impartiality and help you negotiate the terms of your contract.
Your settlement agent can advise you on:
- Important clauses and conditions that will protect you: structural report, termite inspection
- How to be aware of, or avoid clauses that can cause you trouble: 48 hour clause
Your settlement agent is there to make the process smooth for you. Finding an agent you’re comfortable with will give you confidence going into your negotiations and will ensure you’re armed with all the things you need to know before buying your next house so there’s no nasty surprises.
The Australian Government has an excellent resource to help you find a settlement agent in your area.
5- Investing a little time now could save you time, money and stress
Buying a house is an investment in your financial future and can be a stressful. Being prepared means you’ll save time, money and angst so that you can relax and find your perfect home.
Ready to start your home-buying journey?
The Fox Mortgage Services team are here to help make the process of buying your next home as smooth, safe and fun as possible. We’re here to guide you through the process, connect you with the right mortgage provider? and give you confidence to enjoy the experience of buying your next home.