Buying a house is a major investment, and it’s important to make sure your finances are in order before starting the process. Once you have started to gain an understanding of the market, the next step is to start thinking about how you’re going to pay for it. So how much money do you need?
How much are you willing to pay upfront to secure your home? The simple truth is that the more deposit you pay, the more likely you are to get a loan.
The Australian Securities and Investments Commission recommends having a deposit of 20 percent of the purchase price of your anticipated property. Some states will allow as little as 5 percent for a deposit.
Of course, it depends on your lender and their rules, as well as your financial situation.
Inspection fees are not compulsory, but it is a good idea to get a house inspection to uncover any likelihood of hidden costs you may have to pay once you’ve bought the property.
Loan establishment fees, legal fees and stamp duty all vary from state to state, so check in with your local authority.
Buying a new home? It’s an exciting decision, but it can quickly become overwhelming if you’re not prepared.
Nearly half of all Australians who take out property finance use a broker to do the hard work for them so you’ll be in the right position to secure your new home.
How does it work?
A mortgage broker can compare hundreds of loans – from big-name financial institutions you know and trust, to small banks and credit unions – and works with you to match the right loan to your goals and financial position.
A good broker will:
Four Steps To Securing Your Home Loan
Final Credit Assessment
During the time when you are closing the deal, the lender will value the property, process your application and make a final credit assessment. If you haven’t already, you’ll also need to pay the full deposit at this point.
If you would like to know more about securing a loan in South Australia, get in touch with our finance broker, David Nguyen on 0403 714 258.
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