Buying a home is probably the most important financial decision you will make in your life. With more and more young people becoming financially independent, there is an increased demand for key-in-hand homes. However, the process for first-time home buyers involves a lot of time, preparation, planning and patience. A great reals estate agent and mortgage broker on board can help the process go as smoothly as possible, but it is the buyer who does the heavy lifting. You need to procure all the relevant documents, process tons of paperwork and arrange meetings with a legion of people.

Secure the adequate budget

The most important to save as much as you can for the deposit. This should be the mainstay of your budget. People who are buying homes that need renovating often go for a minimum down payment, which is enough to buy a home, but if you are able to deliver a large down payment at closing, you will save yourself a great deal of money. Proceeding with the highest down payment you can afford, won’t only lower your monthly payment, but can also eliminate the need for costly private mortgage insurance. A down payment of at least 20 percent of the home value is sufficient to avoid the mortgage insurance and keep your payments minimal. While this might seem a lot of money, a $40,000 down payment for a $200,000 will secure the best interest rates and avoid expensive mortgage insurance.

Calculate your income

Mortgage calculator is your best friend in determining which home you can afford on your salary. Still, keep in mind that the mortgage payment is not the only fee that comes with home ownership. Your budget needs to allow for mortgage insurance, homeowners insurance, home inspections, closing fees and all the housing association fees that are required. When asking for mortgage approval, make sure it doesn’t account for principle only, but for a final and unconditional loan offer. If you settle down with a house that is very likely to be sold quickly, you need to act fast. Waiting for a bank to approve you a loan can be immensely stressful. Private loan companies like NSW Mortgage Corp are here to help when waiting is not an option.

Check the property

Hire a certified civil engineer or an architect to perform a structural survey of the property. Talk to your solicitor about obtaining the surveyor map so you can check that the property boundaries are correct. Inquire your realtor what is the content of the sale. If there is anything to be included, inform our solicitor to include those items in the sale contract. Eventually, it should clarify if the utility accounts are settled. You need to carry out a pre-closing inspection to see if there is any damage to the property as a result of the previous owners’ move out. Sometimes sellers remove items that are considered a part of real estate, like light fixtures and switches and other fixed items. Finally, check if the home systems like heating and A/C, plumbing and electricity are working properly.

If you are looking for the best possible deal, you will need a detailed checklist that ensures you have considered every aspect of the purchase before making an offer. The list can help you keep track of other details like, the number of bedrooms and bathrooms, as well as important details about your new neighbourhood, including nearby schools and amenities. The checklist also allows you to plan out potential mortgage payments ahead of time, so you can decide which properties are available to you at any time. Being able to consult your checklist is invaluable when you have to choose between various homes you have visited. But most importantly, it ensures that everything goes smoothly.