Are you looking to buy a home in Sydney?
Preparing for your next home purchase requires understanding how to prepare your financials. If you are buying a home in Sydney then here are some tips that can help you make sure you are prepared financially.
Consult a good Sydney mortgage broker
A mortgage broker can help you outline and find the right funding option for your property investment. This is especially important if it will be your first time to buy a home or apply for a loan. Financial experts like brokers can show you the ropes of buying and funding a home.
Plan your budget
Buying a home is not your only expense. Make sure you consult a financial planner to see what you can afford in the course of time that you will be paying for your property. It is best to come up with a realistic or workable budget. Knowing exactly what you can afford is the trick to finding the right financing option.
Plan to save for the deposit
Having a big deposit can lower your monthly payment. Most lenders also see it positively that you can exercise control for a period of time allowing you to save as much. The bigger the down payment, the lower interest you will have to shoulder. Also take care of your credit rating because this will affect the type of loan you can get.
Check to see if you qualify for a Home Owner Grant around the same time you apply for a home loan. It is best if you can find a lender that is also an authorised agent. This will allow you to lodge your grant application through them. This is faster and more convenient than sending an application directly to applicable State or Territory Revenue Office. Most of the time when you do this, you can expect the grant processed around the time of settlement of building.
Making an offer and settlement
There are two types of offers when you find the right place: unconditional and conditional offers. Unconditional offer refers to the offer you do outright to purchase the property. You have to be 100% sure that you want or need the property. You also have to make sure you already have the money to purchase it.
Conditional offer refers to a binding contract given that all of your conditions are met. You can still back out should one of the conditions fail. You make the deposit for the property around the time of the offer.
As for settlement, this is the date you take legal ownership of the property. Often, this is when you should pay the balance purchase price. Settlements often last 6 weeks and can be negotiated along with the contract of sale documentation.
During these times, you have to talk to a solicitor or conveyancer because they will help arrange the documents for you to sign. Following the settlement, your real estate will hand you access to the property.
This is just a basic overview of what will transpire when you purchase a home in Sydney. It is best to consult the right professionals so you can prepare for your investment property.
Getting started. Surround yourself with trusted local area service providers
To find the right home purchase specialists, including trade, real estate and finance, our free Tradebusters Sydney Top 3 Local Area Choice directory can help connect you with vetted and recommended businesses near you.