What Buyers Should Consider Before Making an Offer
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Congratulations on your decision to purchase a new home! Buying a home is a significant investment, and we want to ensure that you are equipped with all the information you need to make an informed decision.
The first thing you'll need to determine is what your long-term goals are. Then, consider how home ownership fits in with those plans. Some folks are simply looking to transform all those "wasted" rent payments into mortgage payments that actually lead to owning something tangible-equity, baby! Others see homeownership as a sign of their independence and enjoy the idea of being their own landlord. Then, there's the option of buying a home as an investment.
Consider these six questions to help narrow down your homeownership goals:
What type of home are you looking for?
When it comes to buying a residential property, you have a variety of choices to choose from, such as a traditional single-family home, a townhouse, a condominium, a co-operative, or a multi-family building with two to four units. Each of these options comes with its own benefits and drawbacks, which largely depends on your specific homeownership goals.
Ultimately, the decision of which type of property to purchase rests with you, and you should carefully consider which one will help you achieve your goals. Moreover, opting for a fixer-upper in any category can also save you money on the purchase price. However, keep in mind that renovating a fixer-upper to turn it into your dream home could require a significant amount of time, effort, and money.
What are the specific features you would want in your ideal home?
Although it's important to remain open to some degree of flexibility, buying a property is likely the most significant investment you'll make in your lifetime. You deserve to find a home that meets both your essential needs and your personal preferences. Your checklist should encompass fundamental desires such as location and square footage, as well as minor details like the arrangement of bathrooms and a kitchen equipped with reliable appliances. Utilising real estate websites can be an advantageous way to investigate properties that meet your criteria for your new home.
What is the size of the bond you qualify for?
Prior to house-hunting, it's crucial to understand the amount a lender will loan you for your first home purchase. Factors like current debt, monthly income, and employment history determine the amount.
To avoid wasting time, get preapproved for a loan before submitting an offer. Most sellers only consider offers accompanied by a mortgage pre-approval. Start by researching lenders and comparing interest rates and fees. Next, complete your mortgage application with the necessary documentation to prove your income and debt.
How much home can you afford?
Although a bank may approve a loan for a pricier home, it doesn't necessarily mean that you should take it. Many first-time homebuyers fall into the trap of borrowing more than they can afford and end up struggling financially. To avoid this, take into account the overall cost of the house, including property taxes, insurance, maintenance, and closing costs, not just the monthly payment, before deciding on the loan amount.
Do you have enough savings?
It's easy to overlook the fact that you need to pay for transfer and bond registration fees before your new home is registered, and this can be costly if you haven't budgeted for it. Some banks are also offering home loans up to 105% to cover these fees, but you must meet specific qualifying criteria.
The major obstacle preventing many individuals from purchasing a home is often the challenge of raising the necessary deposit. However, some banks provide 100% loans to eligible candidates. For first-time homebuyers, ooba Home Loans Specialises in bonds and has a high success rate, with more than 75% of home loan applications that don't require a deposit being approved on the first try.
Who will help guide you through the purchase process?
A real estate agent will help you locate homes that meet your needs and are in your price range. It is also important to consider your options and do your homework. We recommend that you choose agents who are experts in the particular areas in which you are looking, so that they can advise you on various aspects such as nearby amenities that might suit your needs.
Then, they will meet with you to view those homes. Once you've chosen a home to buy, these professionals can assist you in negotiating the entire purchase process, including making an offer, getting a loan, and completing paperwork.
A good real estate agent's expertise can protect you from any pitfalls you might encounter during the process.
Author: Seeff Atlantic Seaboard & City Bowl
