Owning your home is a great achievement. The process entails major sacrifices, discipline, and effort. With determination, you can now join the pathway to buying your home.

The decision to buying a home is a life-changing moment. You need to consider housing affordability and take the necessary procedure.

What Affects Housing Affordability?

Various uncertainties are surrounding the housing market. Lenders thoroughly scrutinize home loan applications.

I want to take you via this step-by-step guide on how you can achieve the dream of owning your home.

Start Your Research Early

Read real estate listings from magazines, newspapers, and websites. Make a note of specific homes you are interested. Inquire about their whereabouts in the market.

That will offer you with the sense of housing trends in particular places.

What’s The Type of House You Can Afford?

Lenders recommend you to go for a home that you can afford. The cost of the home can be three to five times your yearly household income and not more. That’s if the buyer plans to make 20% down payment and get a moderate debt amount.

Determine your decisions based on your financial situation. Most lenders have an affordability calculator. Use it to see what you can afford.

Mortgage Credit: Get Prequalified & Preapproved

Before you commence searching for a home, you want to know the amount you can spend. Getting prequalified for a mortgage is the ideal way to achieve that. For prequalification, give your mortgage banker the needed financial information.

Such information may include your amount of savings, investments, and income.

The lender reviews your information and notifies the amount he can lend. This takes you to a crucial step:

identifying the homes within your price range. If your credit is preapproved, you will need to provide financial documents.

The phase involves giving documents such as paycheck stubs, W-2 statements, and bank account statements.

You Need the Right Realtor

When buying a home, real estate agents come in handy. The agents will provide essential information on homes and neighborhoods. Do you know such information isn’t readily available to the public?

Realtors’ knowledge in the home buying process, familiarizing with the area and negotiating skills is highly valuable.

The good thing about agents is that; it doesn’t cost you. They are compensated by the commission offered by the property seller.

Shop and Make Offer for Your Home

Start touring homes that fall in your cost range. It’s useful to take notes on all the homes you visit using your checklist. You will come across many homes. If necessary, take videos or pictures to help you in making a decision.

Check the small details of every house. Those may include:

  • Run the shower to test the plumbing. Check the water pressure and the time it takes to get hot.
  • Turn switches on and off to check the electrical system.
  • Open and close doors and windows to verify whether they work properly.

It’s also vital to assess the neighborhood and note of items like:

  • Whether the homes on that block are appropriately maintained.
  • What’s the traffic on the nearby street or road?
  • Is the street parking enough for your visitors and family?
  • Is the place conveniently situated next to interest places? For instance, shopping centers, schools, parks, public transportation, and restaurants.

Inspection for a Home

Purchase offers are dependent on a home inspection. Checking the property verifies:

  • Structural damage
  • Things that need fixing

Your realtor will assist in organizing for an inspection. The contingency protects you by offering an opportunity to renegotiate or withdraw the offer. The step you take is without penalty even when there is significant material damage.

Both you and the home seller should receive the home inspector’s findings. Before closing the sale, ask whether the seller should fix anything on the property. More so, you will have a house walk-through.

The walk-through allows verifying whether the agreed-upon repairs are made.

Select Your Loan: Work with a Mortgage Banker

Lenders have a broad range of competitive loan programs and a reputation for outstanding customer services.

When purchasing a home, you will have several questions. To ease the process, an experienced and responsive mortgage banker will come in handy.  

Individual home buyers have priorities when selecting a mortgage. Some may be interested in low monthly payments, while others wouldn’t want their monthly payments stopped. Still, others choose loans on the basis they will be relocating in a few years.

Get the Home Appraised

Lenders arrange for an appraiser who offers an independent estimate value of the house. Who is an appraiser?

He is a third-party company member, and he isn’t directly linked with the lender. The appraiser must involve both parties during the process. It verifies that you are buying the home at a fair price.

Coordinate the Paperwork

Are you wondering how to buy a house? There’s a lot of paperwork during the process. Your lender arranges for the title company to:

  • Handle the entire paperwork
  • Ensures the seller is the rightful house owner

Close the Sale

At closing, you sign all the required paperwork to complete the purchase. That includes your loan documents. Your loan takes some days to mature after returning paperwork to the lender.

When do you move into the new home? It’s after delivering the check to the seller.

Housing Affordability in Australia

Meeting the cost of renting privately or meeting the price of buying is challenging or impossible to many.

The Australia government is concerned over housing affordability to varying extents. Provision of effective solutions is affected by the complexity of understanding and solving the issue.

Wrap Up

What goes into your memory when you think of how to buy a house in Australia? The engaging process takes effort and time. Invest those factors for significant payoffs.

Lessons are learnt, and mistakes are made. But isn’t life about all that? If you’ve decided to go that way, housing affordability shouldn’t be an issue.

We want to arm you with the relevant knowledge, tips, and skills. Reach out to us.

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