At some point, all of us dreamt of having our own space where we can go home and fill with things that make us happy; somewhere we can be free and comfortable with our own skin; somewhere we hang out with our favorite people -- home. But we’re always haunted by the thought of needing to “buy the house” because again, it’s not easy to do so with all the bills we need to get through from month to month.
That’s why we listed here all the things you need to know to make that dream possible! Let’s get that house in Wollongong!
1. Study your budget
Yes, studying is a crucial step towards homeownership. It’ll involve a long and hard look at yourself and your finances to really identify how much you can afford, in consideration of the years to come.
How much can I spend? -- A question that is hard to answer, but calculating your income and expenses will soon have its rewards (a house!). If you’re buying a house with a spouse, a partner, or with a sibling for your family, the way to obtain your total income is to combine your after-tax income, income from your respective assets (after buying your chosen home), and any other income from your individual sources.
Once identified, the next to determine is your total monthly expenses. If you’re currently renting, do not include your rent on your total monthly expenses. Subtract your total monthly expenditure from your total monthly income and that’s how much you can afford to pay a loan each month.
2. Get in touch with a mortgage broker and a financial planner
After determining the amount you can devote to your monthly mortgage repayments, talking to someone who knows the in and out of the process can be a great help in smoothing out the path. The amount you can borrow will vary from lender to lender so getting the help of a mortgage broker is a great way to obtain your dream home. Some considerations lenders take in mind are:
Number of dependents
If you’re buying the house alone or with someone else
There are also useful home loan calculator tools you can use online to estimate your mortgage repayments for every month. You just need to provide some information regarding your mortgages such as the requested financed amount, the loan term length, and the interest rate. For a more accurate estimation, talking with a financial planner will help you lay down the steps you need to take for the coming months such as setting aside for deposits, paying stamp duty on the property, etc.
3. Familiarize yourself with home loans and interest rates
This is essential especially when you’re a first-time borrower. Educate yourself with the different home loans and the interest rates accompanying them to weigh your options accurately. It is also important to choose which specific features you’d prefer for your home loan. In cases where you want a fixed repayment amount, then a fixed loan could be for you; if falling interest rates are what you think is likely in the future, a variable rate might be more appropriate.
Loans that offer repayment options are popular because they allow borrowers to pay more than the normal minimum mortgage repayment and take back overpayments. Some lenders offer free repayment options, others charge a fee. If you have a surplus of disposable income, the ticket can be an all-in-one loan or a 100 percent counter account. The transfer of deposits and income to these accounts compensates the principal of the loan and reduces the interest paid on the home loan. This can save you thousands of dollars in interest costs over the life of the loan. Once you've determined the type of loan that best suits your needs, it's time to start applying for a mortgage. You will need proof of income, such as payslips or recent tax returns, proof of your savings history, and other documents that specific lenders or brokers may require.
4. Finding the house to buy in Wollongong
Now that your budget has been set, and financial plans have been drawn, it’s time to find your dream home! This sounds pretty simple and fun but the process might be stressful, too. To avoid complications, it’s best to talk with a professional real estate agent in your area.
If you’re looking forward to moving to Wollongong, check out A-List Property Group -- with their best realtor, Anthony Sorace. You can discuss your budget, the specific area or suburb you prefer to live in, and the house features you need with your real estate agent. It is important to work with an agent who knows the place by heart as they most likely will have the best suggestions and solutions.
5. Different ways of buying a house
If you're already happy with the property, it's an ideal opportunity to take your next action. While it is critical to be careful in making any deals, don't be too rigid during negotiations. After all, you’ve found your dream house! It’ll be a big regret to lose a bid by a few hundred dollars knowing it’s the home you want and need.
Private sale offer
The most widely recognized approach to purchase a house is by private arrangement or deal through a real estate agent or straightforwardly from the owner. It’s a relief to know once the house you’d like to buy isn’t under auction as it saves you from the dread of the auction day. However, this will lead you into another dilemma -- how much should you offer? In this case, it is very important to talk to the owner’s real estate agent to make a proposal.
Deposit bonds are often used at both auction and private sales to replace a cash deposit. As the buyer, you need to buy the bond from insurance companies at a minimum 1% deposit. Consequently, this bond will serve as a guarantee to vendors that payment of the initial deposit has been made for the property purchase. But the full deposit amount can be paid at settlement once the full purchase price is required.
Exchange of contracts
Once the deposit has been settled, a contract exchange normally happens between the buyer and the seller. At this point, the borrower is bound to proceed with the property purchase. There are exemptions to this, however, such as breach under the terms and conditions stated in the contract. These need to be explained to the borrower prior to the payment of deposits.
As stated above, buying a house under auction can be stressful. It will also require you to have pre-approved finance and a larger deposit or deposit bond to proceed. Unlike private sale offers, you won’t be able to conduct inspections of auctioned properties after you bid for them. You need to acquire a copy of the property conditions and vendor’s statement in advance and make your legal representative check its terms and conditions before the auction starts.
6. Welcome to Wollongong!
This is the day you’ve been waiting for! At this point, you (or your conveyancing solicitor) will be meeting the seller or vendor of the property to swap the cheque with the title of ownership. You’ve worked hard to get here so cherish the moment! Don’t forget to insure your house at the time of settlement to remove any ambiguity. Congratulations on this major achievement. Buying a house isn’t always easy but the fulfillment it brings is priceless.
If you’re looking for houses to buy in Wollongong, check out our property list
. There’s no pressure in making this leap. If renting is one of your choices right now, we’ve got you covered there too. Check out our rental properties here
. For more details, call us at 0413 690 459 or email us at email@example.com