Buying a new home may be the single most important investment you will make in your entire life or at least for a very long time.
There are many factors to consider, be they related to the country that you live in or to the specific property you wish to purchase, to name but a few. The following may be some of the factors to consider.
- Is it the right time to buy?
- What can I afford?
- How will I finance the purchase?
- Will I make use of a bond originator? ( if available in my country)
- What type of property do I require?
- Will I make use of estate agents?
The first Step- Property Financing
What is important to know, however, is that when you consider purchasing a home, the first step, will always be to determine affordability. This is actually quite easily solved through a visit to your bank or by making use of a local bond originator. These service providers will be able to determine the following upfront:
- What is the amount the bank will be willing to provide in terms a loan which can be utilized to purchase the property.
- What your premium would be.
- What interest rate you would be required to pay.
- What amount, if any will be required as a deposit.
You should actually, if possible, really consider making use of a Bond Originator as they will make a comparison of all the home loan products offered at all the banks and actually shop around for the lowest interest rate for you. This is a service provided free of charge to you as the Bank pays the commission as an incentive for business being referred.
Should you, however, not have access to the free service of a Bond Originator, it is advisable to visit a few banks, consider and explore all the different home loan products that are offered by the respective banks and actually make your own comparison pertaining to interest rates as well as other incentives offered by the respective banks.
Other incentives may include, the waiver of the deposit, free valuation of the property intended for purchase, some banks may also carry the Bond and Transfer fees. It is vital when choosing a bank to finance your home that you take into account all these factors in order to compare apples with apples.
The second Step - Searching for your new Home
The second step, even though it may be exhausting, can be very exciting and may result in great satisfaction. Yes, of course, I mean the search for your dream home.
Here you need to consider -
- What type of property you require.
- Which areas you would consider making your home.
- Whether you would like to make use of the services of estate agents or not.
- Whether the services of a home inspector will be needed or not.
The main factor to consider when making use of Estate Agents is that the commission payable to the agent is normally paid by the seller, but the seller as a rule inflates the selling price of the property to facilitate the agent's commission. A more viable option would be to search for a home on sites where owners advertise their homes without making use of estate agents. It must, however, be noted that most sellers still make use of Estate agents to sell their properties and it may be difficult to avoid buying a house without the involvement of an estate agent.
Last, but not least, I would like to caution you to as far as possible to make use of the service of a Home inspector. The services of a home inspector ensure that you purchase a home free of latent defects, which otherwise may only be discovered after the purchase of your house and may later create a nightmare. The Home Inspector should uncover these upfront and you will be able to adequately address them prior to the conclusion of the sale.
Happy House Hunting!!!
FOR OTHER BLOGS BY LEA
http://angelliam.blogspot.com/
http://leannecoetzee.thebestbizreview.com/
No comments:
Post a Comment