7 Steps to Buying Your Next Home

Chances are it will be the kind of house you wanted when you were first looking to enter the market, but couldn’t afford. Now you’re in a better financial position and ready to get that little bit closer to the home of your dreams.

Growing families are a common reason for trading up to a second home. The house you choose might still need to have some work done or improvements made, but if you get the important things right, you’ll be set to stay put for a long time.

Or maybe you did buy your dream home first time round but find that it no longer suits your lifestyle.

Whatever the reason, there are some important things to do when it comes to buying a second home.

Let’s look at it in detail:

1. Make a list

Write down all the things your second home must have, or offer the potential to have, for example an ensuite or fourth bedroom. Writing down your must-haves will help you stay focused when it comes to finding a house to suit your needs.

2. Understand the costs 

Talk to us to work out exactly how much you can borrow and the costs involved.

Things might have changed since you bought your first home. You will need to factor the following:

  • stamp duty,
  • agent fees and loan fees,
  • bridging loan costs (if you want to buy before selling your current home),
  • building and pest inspections, legal fees, registration costs,
  • lenders’ mortgage insurance (if borrowing more than 80 per cent of the property value),
  • insurance costs (if you’re moving to a flood zone, for example, your insurance premiums could skyrocket),
  • moving costs,
  • council rates or body corporate fees and charges for contract changes (internet, phone, TV subscriptions, electricity, gas, water).

3. Get preliminary approval

When you are ready to look seriously for a property, apply for preliminary approval. This will let you make an offer with confidence and will encourage vendors take you more seriously because they know you can get finance. You can apply online or make an appointment for a call with one of our lending managers.

4. Appoint a Conveyancer

This is also a good time to appoint a solicitor or conveyancer so that when the time comes you can quickly get advice and information about the purchase of the property, get documentation prepared and have the settlement completed.

5. Buy your new home 

Once you start looking you might be disappointed that the homes you’re seeing are not quite ticking all of your boxes.

Just remember it takes time for a place to feel like home. Attend open houses and imagine yourself and your family using the different rooms and outdoor areas.

You can always buy a new oven for the kitchen and it’s easy to add extras like air-conditioning later.

Factor in the cost of these additions but remember, the home’s liveability and location and whether you feel happy in it is what matters most.

Once you have decided on a home, agree on a price with the seller. Here are our tips on negotiating a good price.

6. Apply for a home loan

Now it is time to apply for a home loan. Make sure that you shop around for the best price and include online lenders such as loans.com.au in your search. Online lenders consistently have the most competitive rates and the difference can add up to tens of thousands of dollars over time. Best of all, it only takes a few minutes to take the first step with loans.com.au.

7. Your loan is ready to go when your lender gives you a final letter of approval.

Just sign your documents, including your mortgage contract, and you are ready to go.

The final stage in the loan process is settlement, where your solicitor or conveyancer meets with your lender and the seller’s representatives to exchange documents. They organise for the money to be paid to the seller.

Congratulations – you have succeeded in buying your next home!

Recommended reading

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Pros and Cons of Buying Off-The-Plan

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3 Things to Consider Before Buying a New Home

Here are the things you should consider before buying a new home.

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