Home Buying Guide: Checklists for Determining if You’re Financially Ready to Own a House

first-time home buyers

first-time home buyersSo you think you’re ready to buy from those new homes in Melbourne? Manorlakes.com.au suggests double-checking your financial readiness before, during, and after you make the purchase.

To know if you’re one-hundred percent ready, these questions should come in handy.

• Do you have a good credit record? Your credit standing can seal the deal in case you’d like to buy a house via a bank’s house loan program.
• Do you have cash that is equivalent to at least 20 percent down payment? This one is no-brainer since down payment is a prerequisite in buying a house.
• Do I have reserve cash that is equivalent to 6 months of mortgage? You don’t want your home loan to be forfeited, right?
• Do you have a steady job? It is where you’ll get your money from to spend on this purchase, so it’s only natural that you have a sustainable source of income.
• Do you have a low amount of debt? If it is important to have a good credit record, it is also important to maintain a low amount of debt.
• Can you afford the monthly payments? The mortgage, the bills, the homeowner’s association fee (HOA) and so on, all these you have to consider.

When your answer to the above mentioned questions is mostly yes, then you can move on to the next set of questions concerning personal considerations.

• Does owning makes you save more than renting?
• Is your prospective home a fit to your lifestyle?
• Does it satisfy all your requirements?
• Is it near a school? (if you have kids)
• Is it near your job? (if possible)
• Is it near public transportation? (if possible)

To make sure that you don’t miss the important things when buying from any of those new homes offered by real estate agents in Melbourne, do the following no-nonsense tips:

• List locations
• List sizes of houses
• Note that a house should be at least 1800 square feet with 3 bedrooms
Inspect the house
• Talk to the neighbours
• Request to see the house at night

Questions to ask your real estate agent, among the many questions you should ask, include the following:

• When was the house built?
• What percentage is the tax property?
• Is there a lien on the property?
• Is there HOA? If yes, how much?
• Are there any additional facilities?

Buying a home should be treated partly like a place to live in and partly an investment. You are spending money to get its worth and possibly a return in the future as a result of smart decisions and favourable economic conditions.