This year the spring home buying season is going to be busier and more competitive than ever before. Are you ready to enter the ring?
Spring is well-known as peak home buying and selling season, and this year it’s expected to be even busier than before. With the influx of government grants to help stimulate the building industry and the low home loan rates available, there are more people than before eager to purchase a new home.
With the increased level of buyers in the market, the competition to secure a certain property will tight. There are a series of steps you can undertake before you hit the open homes to help increase your chance of success.
Choosing the right home loan
One of the most important things to consider when looking for the right home loan is the interest rate. Even the smallest difference in interest rates can add up over the life-cycle of the home loan so it will save you in the long-run to shop around.
Get help comparing home loans to find the right one for you
The finance market can be a confusing world, but the Carbon Finance brokers are equipped to explain the whole process and help you gain a thorough understanding of the home loan options available to you. Our mortgage brokers will be able to help you understand your borrowing power and what your repayments might be, find out now.
Pre-approval: Buzz word or something you need?
If you’ve started your journey to buying a home, chances are you’ve heard the phrase ‘home loan pre-approval’ quite often. But, do you know what it is, why you need it and importantly, how to get it? Let us help break it down for you.
- What is home loan pre-approval?
Also called conditional approval, home loan pre-approval is an indication of how much a lender is willing to lend you for a home loan. Don’t forget, pre-approval does not mean you’re automatically guaranteed approval for a home loan, as a lender may reject your mortgage application.
- Why should you get home loan pre-approval?
Pre-approval helps you get a more realistic idea of your borrowing capacity which will help you with your search. It’s also viewed favourably by sellers, and often shows them your intention to purchase is serious.
- How long does it take to get?
If a lender offers online pre-approval then the turnaround will be very quick as it’s typically a system-generated process. If the lender doesn’t offer an online option but instead opts for a fuller assessment it can take longer as it involves the lender’s credit department.
- How long does pre-approval last?
Pre-approval generally lasts up to three months, which should be enough time to narrow down your search for your dream home and get your application. Be sure to check the expiry of your pre-approval though, don’t just assume.
Do your research.
Whether you’re searching for your first home, need to upgrade your space, looking to downsize or on the hunt for an investment property, it pays to do your research.
Make a list of your ‘deal breakers’ and ‘nice to have’
There are many factors that play a part in how much we enjoy living in a certain place. Some of these can be easily forgotten when looking for a new home, but you’re quickly reminded of their importance when they cause irritation!
What are your dealbreakers?
What can’t you do without: E.g. property size, home layout, schools, public transport, car parking
What would be nice to have, but not essential?
Things that you wouldn’t mind missing: E.g. outdoor space, fittings, design
Know what type of home you want to buy
There are a few different types of properties, so narrow your search down to what suits you best.
- Unit or apartment
- Vacant land
Understanding the grants available
There are now a number of grants available for home buyers or those looking to build. There are a few complexities to understand before jumping in and signing a new contract, and our Carbon Finance team can help you navigate this.
For a full overview of the government grants, click here.
Need some help to get ready?
Feeling overwhelmed by all the things to prepare and consider before entering the property market? Don’t worry, Carbon Finance can help.
Get in touch with us to arrange an appointment to get ready for the spring home buying season.
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