How to know if you’re ready to buy a home

Dream-HomeWith interest rates at an all-time low there’s possibly no better time to get into the property market… but how do you know when it’s the right time to buy for you?

Property is one of the biggest purchases that most people will make in their lifetime, and so it’s not a decision to be made lightly. Sometimes you just know it feels right though and if you can answer, “yes” to the below questions then you’re probably already well on you way to being a homeowner.

Have you saved for a deposit?

A bank isn’t going to lend you 100 percent of a home loan so you’re going to need to start saving. Some lenders may accept as little as a 5% deposit, however it’s best to save about 20% if you want to try to avoid paying extra costs such as lenders mortgage insurance.

Have you got a good credit rating?

Before you even start to consider taking out a home loan you should try to clear any outstanding debts and get your credit rating on the right track. If you’re always behind on things like mobile or credit card bills then this may affect your credit rating so make sure to start paying bills on time to improve it.

Have your started researching the property market?

How will you know how much to save up for if you don’t know how much it costs to buy? It’s a good idea to start researching the property market early so you can get your head around differing property values. Many first time buyers can’t afford their dream home, so you may need to consider what you would be willing to compromise on to get into the property market sooner.

Are you sure it’s the right time for you?

Even if you’re financially ready to buy a home you need to ask yourself if it’s the right time for you. If you have just started a new job or if you’re thinking about relocating then you may want to hold off on buying a home for a little while until you’re in a more secure position and can make a long-term commitment.

If you think you’re ready to make that commitment to a buy a new home then it’s best to book in for a chat to a home loan lender so you can get pre-approval and get started on your property hunt.

Good luck on your property-buying journey and if you would like to view properties for sale in the Bacchus Marsh area then you can find them by searching on this website.