If you’ve found the area that you’d like to live in, you’re probably thinking about settling down and purchasing a home there. This can be a stressful time, though. Finding a reasonably priced home that you like is one thing, but then you need have a down payment ready, as well as secure good financing.
The few tips below are going to help you make sure you’re ready to purchase.
Check Your Credit
It’s unfortunate but true that many people don’t have great credit. Emergencies, loss of employment, and unexpected medical bills can all ruin credit in a matter of weeks. Even if you don’t think you have credit issues, it would probably be best to check.
There could be mistakes on your credit from institutions you’ve already paid.
It’s usually best for those looking to purchase a home to have most of their credit line still available. In effect, it could be difficult to get a loan if all of your accounts are at their limits, even if you’re paying on time.
Get Your Papers Together
When you do find a bank that can offer you a loan at an attractive interest rate, you want to make sure that you’re ready to go.
Banks seem to be adding on requirements in terms of what documents they will need to see before they finalize the loan arrangement.
Be sure to gather copies of your recent pay stubs, your tax documents for the last couple of years, as well as statements from any retirement plans you may have open.
Have Your Down Payment Ready
Before you start looking for a home, you should have your down payment available. Don’t start saving at the same time you start looking for a home. Generally speaking, the larger the down payment you have, the easier it will be to get good financing. If at all possible, you’ll want to have ten to twenty percent of the price of the home available for a down payment. This proves to banks that you are ready to make a large purchase.
In addition to helping you attain financing, a down payment also reduces the value of your loan, which in turn reduces the amount you end up paying them in interest.
Hire a Broker
Many first time home buyers are not aware just how much easier the home buying process can be with a broker. Mortgage brokers in Brisbane work for you. Their job is to help you be sure that you get the best financing possible. They’ll be familiar with the banks that can help you with your loan based on your credit, and can thus save you quite a bit of time.
These brokers work for you, and generally make their money from the bank that ends up taking the loan. They may not even charge you any fees.
Hire a Real Estate Agent
These agents can also be a great help to you in the process. They are generally much more aware of trends in the industry, and can help you to find the home you want. Hiring a real estate agent could save you a lot of time.