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How to buy a house in 7 easy steps | Mortgage brokers sydney

Buying a house is not something you do everyday, so it’s easy to lose yourself in worrying about what you might have forgotten to worry about…. if you know what I mean. At home loan comparison our mortgage brokers Sydney take the weight.

Relax, we do do it everyday and we are here to help. Here’s a few tips based on a regular NSW purchase, the other states are very similar so it’s a good enough rough guide.
1 Finding the perfect place.
This is as good a place to start as any and I was recently reminded that what seems like the simplest bit still offers a learning curve if you don’t do it regularly.
Start by making a list of “must haves”, “must not haves” and “would really likes” ie:
Must have two bathrooms, big bedrooms, quick walk to transport, purple window frames – whatever it is that are non-negotiable for you and yours.
Must not have is harder – for me it would be the above windows… but thats personal! Must not have might be about the location – no closer than x to a freeway or train station, or it might be about the land size and your desire to not spend all weekend mowing for example.
And the last list is the negotiables, things that you would love but are not-essential, like stone benches or a toilet in the laundry.
Remember there are some things you cannot change either, like the location or the land size, so these need to be higher on the prority list. And there are things that you can easily change – look at the opportunity in the worst house on the best street if the budget allows, I’ve done this myself – a massive renovation but worth every drop of sweat because the property was seriously undervalued. A lick of paint, some new carpet and a change of benchtops are all relatively cheap if theopportunity is right.
Conversely, the cost to change over a property is much higher than you think – allow on average 3.5% of the property sale price in agents fees and legal costs to sell your place if it all doesn’t work out – and about the same for a new home, on a $500,000 property this is almost $35,000 you’ll never see again – ouch. So, any property you buy should ideally suit you for at least 3-5 years to make the most of the costs involved in buying.
All of this will also help you narrow down the right propery and the right price which brings me to the next point.
mortgage brokers sydney
2 Working out the money
With a bit of an idea of what you want to spend it’s time to sit down with your favourite broker and look at how you can finance this. A good broker will also advise of any grants that may be available to you and help you apply for these.
It’s really important to discuss the actual repayments for your loan – do they fit your budget without too much hardship now and in the future? Be honest about any changes you expect like having children or changing work.
I also like to look at how you plan to use the home, and for how long, and what comes after that – so, do you plan on moving in straight away, and if you’re going to stay for 5 years for example, what do you plan to do after that – sell or keep for example. There are a few simple things a clever broker will recommend that you do now to make the property more suitable for now and in the future.
3 Engage a quality solicitor or conveyancer.
This is a crucial part! Your solicitor or conveyancer has the important role of transferring the property to your name, and in the process making sure that you’re buying what you think you are buying – and that there’s nothing significant that’s going to cause you grief, like a new highway planned for next door.
They’ll also talk about buying the property in one or two names, buying it 50/50 together or another split (brilliant for investing and asset protection) and make other suggestions.
Now is not the time to skimp – you do get what you pay for in solicitors, so pay a decent price, after all it’s one of the biggest purchases you’ll make…. till the next one. I also recommend using a solicitor with a dedicated conveyancing team or a dedicated conveyancer – ratherr than a solicitor who does lots of trial work and may not be availabe wen you need them – thats a quick road to stress city!
4 The search resumes
Now you’re much better informed it’s time to look in earnest and  as soon as you have found your new dream home you start the process of negotiating a price. Without being rude you’re not making friends here – they’re not going to be your neighbours even – so be reasonable but also clever – the less you pay the less you have to repay! Once the price is agreed you’re typically asked to pay a holding deposit and start the process of getting all of your checks done and final finance approval.
5 Pest and Building inspections.
Worth their weight in gold in my opinion. Around $500 will give you the low down on any major issues with the building you are buying – and from there you can make a decision to buy or not, and or speak to the seller (vendor) about the price if need be. Without this you could be buying untold problems that you may not want to afford fixing.
6 Cool off and exchange
After a “cooling off period” you either pull out of the purchase (technically, rescind the contract) – if things aren’t lining up properly – or more likely proceed to “exchange” contracts and the deal is done. Usually you’ll pay the rest of your 10% deposit at this time. From here it’s sit back and relax until settlement date.
7 Settlement! The good bit!
Finally you’ll own your new home – you need to arrange to pay the rest of your contribution (if any), make final inspections to make sure the property is in the condition you expect and sit back and wait to hear that it has all been finalised. In the background your solciitor and the banks solicitor and the same for the vendor are getting together to swap over titles and money. The solicitor for each side then lets the agents know that you’ve settled and it’s the agent who gets to ring you and congratulate you – and of course arrange for you to have the keys.
If you’re letting the property out that’s about the process over for you, but if this is your new home then the excitement has barely begun… moving…. that’s where the real fun is!

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