Things to Remember When Buying Your First Home
Get it Right First Time with these Great Tips
Buying a home is a scary process. First timers, in particular, can get lost in a sea of paperwork. Working with a good buyer’s agent in Sydney can help. Even so, there are some things that may trip you up.
So, what do you need to remember when buying your first home? Here are a few things that will slow the process down if you forget them.
Do not start the home buying process if you don’t have pre-approval for a home loan. This comes in the form of a letter from your lender. It tells everybody involved in the transaction how much you can borrow. It also helps you determine your budget. Pre-approval calms everybody’s nerves. It offers you certainty. It also shows both sellers and buyer’s agents in Sydney that you’re serious about buying a property.
Lender’s Mortgage Insurance
Any loan of over 80% of a property’s value usually has Lender’s Mortgage Insurance (LMI) attached. This protects your lender in case you default on the loan. LMI isn’t a part of every home loan. You can sometimes get around it when using a specialty lender or if you have a large deposit.
The Contract of Sale
The contract of sale is among the most important documents in a property transaction. It secures the deal and legally obligates all involved parties to meet the terms of the contract. First-time buyers often allow this contract to get lost among other paperwork. You must have a solicitor or conveyancer examine this contract before you sign it. Make sure you keep a copy so you can protect yourself should you need to.
Finding a Conveyancer
The conveyancing process can drain a lot of time. By the end, you will have secured the transfer of the legal title from the seller to yourself. Place finding a qualified conveyancer high on your list of priorities. A property-focused solicitor can also help. Check online for recommendations and ask friends or family about any conveyancers they have used before. Good conveyancers will speed up the process.
Budget for Stamp Duty
Most Australian property transactions have a stamp duty levied against them. You will have to pay it at settlement and the amount varies depending on the price of the property. Your buyer’s agent in Sydney will help you calculate the stamp duty cost. There are also several calculators online that will help you figure it out. The key is making sure you have the money in your budget to pay for it.
Get a Professional Inspection
Never go by your first impression of a house. Sellers will stage both the interior and exterior of the property. This can hide issues that you need to know about before you sign any contract. Property inspectors will find these issues. They’ll look for damp, pests, and damage to the property’s structure. Spotting these issues will affect the bid you make, should you still choose to make one. In some cases, you can save tens of thousands of dollars. Your buyer’s agent in Sydney will help you find a suitable inspector.