If you have decided to go for buying a home, it could be nerve-racking and thrilling at the same time, most especially if you are one of those homeowners. It is quite difficult to know what you should expect.
The learning process could be quite steep, yet most of the issues can be easily resolved by simply doing some sort of financial homework at the outset. However, if you need help, there are tips you can consider to help you move on. Here they are:
Where and what can I buy?
You might have been asking about where and when you can buy your home. What would be the best time for you to have it? Well, the answer for this is, are you ready? There are tax and mortgage payments you have to pay and you must be ready for it. Buying a home is not just like buying a candy in a candy store. It takes a little while and deeper thoughts before you can decide.
If you are financially ready for buying a home, the next thing that you have to think about is what you can buy. A single family home or residential home? Which one do you think you can pay for?
How much deposit will I need?
Getting a mortgage for the first time is a bit tough than it was a before. If the lenders think that you are only spending too much on the non-essential items, even if you claim to cut them out if your mortgage payments go higher, then they could simply refuse you a mortgage. However, there are main banks as well as building societies that are keen to helping new buyers to buy their houses. For example, on a home purchase that costs $400,000, you can actually access a home loan of about 95% loan of $380,000, which only means that you will have to provide a cash deposit of $20,000. The only thing is that, you could also add the cost of the LMI of the loan amount which is up to $8,000, bringing a total loan of up to $388,000 or 97%.
If you think you can manage to let go of this amount or if you are able to get such, then you can consider buying a home.
How much can I borrow?
The amount you can borrow to buy a new home actually depends on the number of factors such as the value of the home, how much you have saved towards your deposit, your income, so as your ability to repay your home loan right after you have paid your regular expenses. Keep in mind, the more deposit that you have, the smaller the loan you will need, which will also be the faster way to repay your mortgage. However, if you don’t have big deposit amounts, never panic.
What are all the other costs involved?
The costs involved in buying a new home are the transfer costs, which depends upon the value of the property, the bond cost, the local council deposit, occupational rent, financial institution fees and the estate agent fees.
How can I repay my mortgage quickly?
Just like everyone, you want to repay your mortgage fast, so you can freely breathe and enjoy your income more. Repaying a mortgage can be done in years, but you don’t have to worry. If you can provide big deposits, you will only need low mortgage amounts, which only means that you can repay it in no time. However, lower deposit amounts and higher mortgage amounts can give you many years for the repayment.
What other decision do I need to make during this process?
Before buying a home, you should know how to recognize a problem, you should know how to search well for the information necessary for this matter, you must have the capability to evaluate alternatives, making the right purchase decisions, and think about your post-purchase behavior.
Keep in mind, buying a home is a big responsibility, so you must be completely prepared. It’s not like you will purchase a home today and forget about paying your mortgage. You don’t want to live in the streets, right? No one does. So, keep yourself up and ready when buying your first home.