Purchasing your first house is a thrilling experience. It can be nerve-wracking, even though it marks the beginning of financial freedom. Housing costs, on the other hand, are still greater than they were in Covid-19, albeit dropping.
Carry out thorough research
Everything you get from a real estate agent and the property you’re interested in should be carefully selected.
It should come as no surprise that the majority of fraud cases involve real estate. Use reliable realtors who have been recommended by other previous home buyers when looking for your dream property.
Interview a few agents and ask for references. Extend it to the property you choose with careful diligence. Let’s say you want to buy an off-the-plan property that hasn’t been built yet but is cheaper and promises to be completed on time.
Don’t accept the sellers’ word for it; begin making deposits right away. Determine whether the property is genuine.
Make sure you do adequate research on the house you want in terms of affordability. If you’re thinking about starting a family, consider your long-term demands.
Consider whether you want to live in a less expensive apartment with less privacy. Then compare the pricing to other properties on the market that are similar.
look for a low-cost option
Don’t just take the first offer that comes to you. Over a 25-year loan, a seemingly small change in loan repayments can save you millions of dollars. Since all banks are run by a central bank, the rates of different banking institutions are almost the same.
However, there is not much difference between the lowest and the highest rate, the lowest 12.2 percent and the highest 15.1 percent. Ensure that the organisation you work for has a bank arrangement in place, as prices are now very low.
Calculate the amount of money you’re able to borrow
The quantity of money you get from the bank is mostly determined by your income. If you work, you must give your pay stub. If you’re a business owner, present your audited books of accounts.
The bank will next advise you on how much you can borrow depending on your monthly income and the ‘one-third rule’ of living expenditures.
The guideline states that loan payments should not exceed one-third of your gross monthly income, including housing.
Your monthly repayments are calculated using a mortgage calculator once your income has been confirmed.
Avoid mortgage brokers at all costs
Banks were receptive to agents a few years ago. Borrowers would be connected with a bank through the agents in order to obtain a mortgage. People started utilising phoney payslips and other documents, which led to fraud.
Since that time, banks have refused to accept loans from brokers or agents. It is preferable to go straight to a bank’s mortgage department to obtain the information you require.