Looking for a Property? Prepare Yourself With These Steps Before You Start

Making a huge investment for yourself could give you peace of mind but also too much anxiety at the same time. However, if you are aware of the entire process that you must undergo, and have complete knowledge of the required details, you will be able to cross the bridge with ease. 

You must consider the following aspects involved in order to keep yourself ready for a mortgage before actually stepping out to buy the property-  

• Borrowing eligibility 

Before starting with the process of buying your property, you must be aware of your budgets. You must have a calculation of how much amount do you already have and how much would you need more. While taking a call on this, you must consider your income, the purpose of the property purchase, etc. Post this, you should be able to establish the amount of deposit and other loan repayments and commitments required. 

Your decision should be focused on your financial comfortability of repaying the proposed property loan. Instead of pushing yourself out of your limits, you must sit down and work on a budget in order to reach the amount that would be left over to be repaid. While doing this, consider the interest on a loan that you must pay on the loan borrowed. 

• Expenses involved 

In addition to the deposit, a number of secondary expenses are involved in the process as well. These costs are inclusive of- 

• Stamp Duty- Stamp Duty is a government cost that varies between the states and the territory. This is the biggest expense outside the purchase of the property.  

• Loan set-up cost- Loan set-up cost includes the establishment fess and will vary depending on the Lender and the loan product chosen. The borrower may also require LMI (Lender’s Mortgage Insurance) depending on the deposit size. 
• Conveyance charges- The process of Conveyancing involves the transfer of property ownership from the current owner to the buyer. A Conveyancer or Solicitor who is an expert in this field will review your contract of sale and ensure that appropriate checks are conducted on the property with the local government agencies. 
• Inspection costs- Before purchasing the property, you must get it inspected for any structural defects, concerns, pest infections, or anything that could potentially damage your property. A professional in the field will guide you with the proper inspection of the property. 

• Collect the deposit 

Before moving on to your broker, you must put together your deposit amount. Depending on your situation, the amount of the property loan deposit could vary from 7% to -20%. Your trusted lending specialist will provide you with all the available options to choose from. 

• Get pre-approved 

Your Lender will give you a conditional pre-approval valid for 90 days that acts as an indication for your eligibility to borrow up to a certain limit. This will assure the seller of your eligibility and affordability of buying the property. 

This information is general only and is subject to change at any time. Your complete financial situation will be assessed before acceptance of any proposal or product.