Steps to follow when buying a home | Geoff Brand Real Estate

Tips for Buyers

Owning a home is everyone?s dream. However, you shouldn?t wake up one morning and decide to buy a home. It doesn?t work that way. If you want to buy a home, you should take the following steps.

What type of home can you afford to buy

This is the first question that you should ask yourself. To do this, you will need an online mortgage calculator. These calculators show you the approximate value of a home that you can afford depending on the prevailing interest rates, term of the loan and your net monthly income. Another important factor that shouldn?t be left out is your debt to income ratio. This ratio shows how much of your income goes towards servicing debts. If the ratio is high, you are less likely to qualify for a home loan. Generally speaking, the rate should be below 36%. If it is above that, you should first get out of debt before applying for a mortgage.

Get pre-approved

Before searching for a home, you should first get pre-approved for a mortgage. As a matter of fact, many real estate agents will not work with you unless you are pre-approved for a home loan. Let us use a practical example to explain the importance of being pre-approved. You might find your dream home but your bank denies your loan application. Therefore, you will have wasted your time as well as your real estate agent?s time. It is for this very reason that most real estate agents ask whether you are pre-approved before working with you. The pre-approval process can be tiresome especially if you are not patient enough. However, if you have a great credit score and a stable job, you will get pre-approved relatively easy.

Find a great real estate agent

Once you get pre-approved for a loan, you should find a great real estate agent. The agent will help you get a home that you can afford as well as advice you on where to get the best deals.

Buying a home is a lifetime investment and as such, you should make sure that you get the right home, at the right place and at the right price. These steps will help you get what you have been looking forward to.

Tagged: Buyers, Home, Homes, Latest Property News, property, Real Estate

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Source: http://www.geoffbrandrealestate.com.au/steps-to-follow-when-buying-a-home/

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