Home Buying Tip #2: Are you financially ready to buy a home?

Here are 4 very important questions that you must ask yourself to see if you are financially ready to become a homeowner.

If you can answer yes to all of the following questions you are ready to buy a home:

1. Have you saved a substantial deposit?  When it comes to a deposit for your purchase, the bigger the better.  If you can show that you have a solid track record of permanent full time employment and consistent savings in your bank account, it will make it much easier to get a home loan.  The more savings that you have the better.

2. Have you compared mortgages?  Have you contacted various mortgage brokers and banks to make sure you can choose the loan that best suits you?  Have you been pre-approved?  Do you know exactly how much you can and should spend on a property?

3. Do you have a budget?  Do you know exactly how much you can comfortably afford to repay?  You have already saved a substantial deposit so you will have to continue to have a strict budget in order to make your mortgage repayments.  A budget will help you to cope with the added expenses that you will encounter as a home owner such as rates, water, insurance and maintenance.

4. Do you have a savings buffer?  You will need to have a savings buffer to cover any unexpected repairs or damage that may occur.  This will also be essential in case interest rates rise which will increase your repayments.

If you have answered yes to all of the questions above you are financially ready to buy a home.  All you will need to do now is find the right home for you.

Before you purchase your home you should have a building inspection and timber pest inspection.  Aegis Building Inspections are the experts in property inspections.  We conduct building inspections, pest inspections as well as pool safety inspections. Book your inspection today (07) 3103 3393.

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