Are you Ready to Buy a Property?
Buying a property is an exciting time and there are a few things to do in readiness for your first / next purchase.
The first step is to save for a deposit. Generally, you can exchange contracts on a property with a deposit that equals 5% of the purchase price. A 10% deposit is preferred. In other words, if you're purchasing an $800,000 property, as a minimum, you'll need a $40,000 deposit, but an $80,000 deposit is preferred. You can borrow from friends / family or obtain a deposit bond if you're short.
In terms of your home loan, preferably, you'll have a 20% deposit, as with anything less than a 20% deposit, you will need to pay Lenders Mortgage Insurance. A deposit of at least 20% will mean you pay less across the life of your home loan, and save you money in the long run. That said, you may be best to use a 5% deposit if this is all you have and it means you can enter the property market, rather than waiting to save for a 20% (or even 10%) deposit. Property in Sydney is going up at at least 6% per annum, so every month that you are out of the market, you are potentially losing money.
You'll need an excellent mortgage broker to assist with your loan. A mortgage broker has access to all of the various banks and can recommend the best loan for your needs. You'll need to complete a home loan application and obtain conditional pre-approval for a loan before you start your property search, so that you understand what budget you can work with for your property purchase price.
Once you have a deposit and pre-approval via a mortgage broker, your next step is to engage the services of a property lawyer or conveyancer. This is a person who can review contracts for sale/purchase and advise on the legal side of your purchase. You can engage their services and then when a suitable property comes along, request them to review the contract for sale/purchase and provide advice. Retaining their services in advance means you have an established relationship prior to your actually needing their service.
With a deposit and conditional pre-approval, you're ready to purchase a property. Contact Melissa Maimann Buyer's Agent and she can assist with all other aspects of your property purchase from searches and inspections to negotiating the sale with the sales agent.