Five Things to Keep in Mind When Buying a Home

There is no getting around the fact that buying a home is a major life decision. There are so many different factors involved with home buying, all of which should be taken into consideration so that you can make the right decision at the right time for you. When it comes to buying a home, there are certain things that any potential buyer should know. Read on for a list of helpful tips that will be of use to you when searching for and finalizing the purchase on your dream home.

Clean Up Your Credit

Before applying for a home loan or mortgage, it’s important that you clean up your credit and improve your credit score. This could mean paying off any existing debts that you owe, or making sure that anything you may be behind on has been brought up to date. You should go over all of the facts which pertain to your credit score, and be sure to quickly address and rectify any errors which may arise on it. Getting yourself in the best financial shape before buying a home also means that you should save up for a down payment. In general, it is recommended that you put down a down payment of 20% of the price of your home, although if you have a poor credit score, it’s recommended that you put down even more in order to improve your chances of securing a home loan or mortgage. You may want to look for a buyers advocate Melbourne to help you finalize all the financial details.

Get Pre-Approved

You may wish to make things easier for yourself by getting pre-approved for a home loan. By doing this, you will be able to determine your budget and know which types of home that you can realistically afford. This will also save you time as you will know to avoid looking at properties that are out of your budget and instead focus on ones which are covered by the amount of loan which you have been pre-approved for. Being pre-qualified for a home loan can also give you a degree of buyer’s control when you are viewing potential homes, as sellers will understand that you have the ability to make them an offer then and there should you wish to.

Determine Your Timeframe

When considering buying a home, you should always think about the amount of time that you plan to live there. If you and your family can’t see yourselves living in a property for more than a couple of years, you might be better off postponing the purchase until you can find another property that is more suitable for the long-term. On the other hand, if you find a property that is in an area where you are happy moving to and are able to visualize yourself living in the property for a number of years, you should consider this to be a worthwhile investment.

Location, Location

Where your property is situated is as important as the physical features that it has to offer. Not only is the location and proximity to local amenities such as schools, shops and hospitals important for yourself, you should also take this into consideration as they will improve your chances of getting a better price and a faster offer on your home if you decide to sell it on in the future. If the property is in a good district which has reputable schools and is in close proximity to local amenities, you are in with a much better chance of making a profit when the time comes to resell.

Research Recent Home Sales

Before making an offer on a property, it’s wise to research recent home sales in that area in order to make a comparable bid. For example, if homes in the area tend to sell for an average 5% less than the asking price, you should reasonably be able to bid around 8-10% lower than the price listed for a home that you are interested in. Since buying a home is an intricate and often complicated process, it’s a good idea to hire a professional such as a real estate agent or financial advisor who will be able to give you valuable advice on how much to offer when placing a bid on a home.

Best of luck with your property search!

About the author

Oliver Revilo