My family and I have decided to end our renting way of life and buy an affordable and comfortable home for the family. Having great credit, applying to different banks and so on are some of the things we've done. But what more could we do and what are some mistakes people usually make when buying a home? Please give some advice on this subject based on your experience of buying home and the do's and don'ts of home buying. Thank You.
First thing you don't do is apply with different banks at will. Each time you do, it hits your credit file, and multiple enquiries in a short time frame raises a red flag, and can ruin your credit file for future requests (as lenders think the worse in that you have been rejected every time).
Make sure you raise enough funds for a deposit, costs, etc to be comfortable with the debt that you are about to get yourselves into, not only now but also taking into account future circumstances.
Also need to ensure you structure the loan correctly depending on what you want to do in terms of future property purchases.
thanks
Hi rsubax72,
If it were Mrs Dubs and I doing the same exercise we would be looking at buying in an area we already know or renting in an area to find out about it first. ( where are you looking to buy ? )
Check the area for flood risk, bad neighbours, how close is the local noisy school or late night noisy pub etc.
Offer well bellow the asking price of the property and bargain hard.
get a building and pest inspection done of the property, find out why the property is being sold.
Its a good question to ask and I hope more responses will follow . . .
hey rsubax72,
Since you're wondering about what to keep in mind when buying a home, I think this article can help you.
I especially like this quote from the article:
"I realised that if I ever wanted to realise a dream, a dream of owning my own home, living where I wanted to live and no longer paying other peoples mortgages while I sat on the fence, I would have to make a decision.
My decision was to view property in a new light. I would look at my home as a pleasure of living, an investment second (whilst doing the best I could to ensure I didn’t make a bad investment)."
Hi rsubax72
Will this property be a PPOR forever or is there a chance you may turn it into an IP down the track?
I know it may be hard to determine now but it's an important question.
Stop shopping around with multiple banks! Each of them are probably submitting a preapproval which is ending up on your credit report.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
When assessing your financial situation, you obviously want to make sure you can afford the mortgage repayments now, but you should also take into account a potential increase of interests rates and see how that would affect your lifestyle. Don't be tempted in buying a property that you can just afford now, or you'll put yourself in a dangerous position should the interest rates rise…
Phil
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