People say that “home is where the heart is” and this is true. Having the right home for you brings out the best in not only you, but your family too. Are you in that stage where you thing this is the time for an upgrade? Do you need to move somewhere else for work? Do you need a larger home? Well some of these may apply to many people who later on seek to purchase new homes and if it really is time to move in to a new home for either your benefit or happiness, don’t let anything stop you. All you need to do is follow a few steps and you will be ready to get that new home sooner than you thought.
- Decide If You Are Ready
Before you go all in and start looking for a house and planning out how you will pay for it and begin telling people about it, be sure to think about it first. Ask yourself “is this the right time and how will this affect the family” before you go on. Be sure to talk to the family about it as well as moving into a new home or moving to another location can sometimes have a huge impact on people’s lives. It is important that you and your family won’t have a hard time moving and at the same time you all should be ready in terms of physical, emotional and financial readiness.
- Check If You Are Financially Prepared
Deciding on getting a new home can be exciting and we sometimes tend to overlook or forget things that are important when making such decisions. It is important that you make sure your financial savings and future in come will be enough to cover purchasing, moving into and living in a new home. Make sure that you have enough to cover an up to 10-20% for deposit if you plan on getting a home loan. Aside from the payments you will be making for your home, be sure that you have enough to continue living in your new home continuously including bills, basic needs for the family and more. Aaron from Lowest Interest Rates note’s that banks have their own internal measures to check your affordability, but you do need to also ensure that you can meet your own budget set out, not just what the bank calculates.
- Plan Your Finances Early
It Is wise to plan everything early on and to do this you need to calculate the amount of income you have as well as how much you spend. From this you can determine an amount of how much you may deposit as this is a very important step when it comes to securing loan. Saving for your deposit early on will avoid you he troubles of settling for a lower deposit which will avoid you the trouble of paying for more mortgage insurance as well as having a longer process when going for an approval.
Depending on which state you are in, stamp duty may probably be one of the biggest additions to your costs when you purchase property. Other payments you will be making could be legal fees, building inspection fees, lender’s fees and more depending on how you have processed everything.
It is best to consult a financial advisor in order to be able to properly assess everything so things may become easier, especially if you are new to these kinds of transactions.
- Understand The Cost And Rates
To avoid getting into a sticky situation it is best to know what you are going to be paying for. Consulting a financial advisor would speed things up a lot since they will most likely know most of the steps and procedures as well as documents you need to go through and provide. Some of the things you may be paying for would be the value of the property, stamp duty, conveyancing fees, legal fees, mortgage registration fee, transfer fee, loan application fee and mortgage insurance.
It is important that you get all the information you need and evaluate your capability of paying for or applying for a loan that can cover most of these. Having a financial advisor to help you sort these out can be a huge benefit as they can help prepare documents and figure out a step by step set of actions to take.
- Getting a Pre-Approval For Your Home Loan
There are actually two steps which you can swap around which are either finding the home first so you have the price or applying for a home loan pre-approval first.
If you decide to look for a home first and find one which you want to purchase you may apply for the loan after and see if they approve of it once you have given all the information they need to know about you and your necessary financial information. From here on its more of a 50-50 deal as some will either require a ton of information or depending on certain factor may require higher values or worse, not approve due to the price and offer. This however sometimes is ok if you are confident that you have enough to get you the pre-approval.
To take a more careful and timesaving step, which is also done by many people who purchase homes, simply apply for the pre-approval first. This way you will know how much you will be granted based from their analysis of your information such as savings, income, credit score and more for the pre-approval.
- Search For The Right Home
This is probably one of the most important steps because not only will it matter to you but your whole family as well. This may affect the jobs of you and your partner as well as the education of your children. Finding a place that is comfortable for your family is the best thing as it is important that you and your spouse will get through their daily routines and jobs while your children will be able to get to school on time all at the same time that your home is close or has a good distance to landmarks which may be beneficial such as shops or service centers that you or your family need to go to. Being in a place that makes life seem easier, makes everyone happier and feels like home is important and careful looking is the right way to do it.
You can search by homes online which is agreed to be the best way as many agents nowadays would set up online profiles for different kinds of sales, especially when it comes to property. Using the internet to find homes that you and your family would like is a good initiative and maybe the best first step you can take. Asking around or checking advertisements can eventually get you there or even driving around will allow you to spot a good place.
- Contacting The Agent or Company
If you are interested in a home, you may first begin by contacting the agent or company that is in charge of selling the home. From here you can follow the steps required for you to go through the whole process of purchasing the home which includes preparing documents and dealing with loans and approvals.
Having a financial advisor, family member or friend with experience with you can be great so they can help walk you through all the steps without delay since sometimes it takes a while for agents or companies to respond or give new steps. This way you can be ahead with everything and save up time and possibly frustration.
- Inspecting The Property And Location
The house may look great but of course you can’t just buy it based on just that observation. You need to view the inside and see what you will actually be paying for. It is important that you inspect everything since you will be moving in and it’s what you are paying a large amount of money for. This does not just mean the way the house looks, check for any problems such as damages, broken parts if there are any, pests and anything that is out of the ordinary.
If there are pests, you may need to discuss this with the agent on a solution but most of the time there shouldn’t be any. It is best to make sure ahead of everything that there are no problems before you finalize your decision on the purchase.
- Initiating Your Purchase
If you have everything set, and decide you really want this home to be yours. After preparing all the documents, going through the loan approval and talking with the agents, finalize the transaction and seal the deal. Once everything is in order go through the final steps of the purchase and make the payments needed along with the signing of agreements and documents.
- Settling Down
You finally have your new home and it is time to move in, it’s good to hire a moving company vehicle or use a large one if you have one. Some people prefer to move what they can with any vehicle they have and safe the rest and largest for moving companies. You will need to start planning your move in the weeks coming up to settlement – because it can take a while to move everything. Once everything is settled, and you have brought all your things. Take the moment to admire the new home you have bought and enjoy the feeling of having a new home.
There is nothing better than the feeling of moving into a new and improved home. This does the family good, especially when it is located in a better place and if the home itself is beneficial for everyone. Many people think that there is a lot to go through when purchasing new home, this may be true for many, especially first timers but this doesn’t have to be tough. Getting someone to help advise you financially is a good step and following a guide such as this can help broaden your view. Remember that you only need to prepare and follow a few steps to avoid confusion and stress when purchasing property and that having knowledge early on regarding what to do can save a lot of time.