8 simple steps to buying your next home

There are stacks of reasons why you might choose to buy your next home.

A growing family (or a shrinking one), the need for a change in environment, or just a fresh start. If it’s been on your mind, let’s walk through the steps you’ll need to turn the page on a new chapter of your life.

1. Research

If you’re planning to sell your current home, ask two or three real estate agents to give you market price estimates. These estimates, in conjunction with borrowing power and home loan repayment calculations, will help you set a budget for buying your next home.

With this figure in mind, the fun begins. Research some properties that suit you, your lifestyle, and your budget.

When you’ve made a shortlist…

2. See your lender

Make an appointment with your lender to talk about your home loan options.

If you’re looking to buy your next home before you sell your current home, you may need to consider bridging finance.

If you’re planning to buy a home at auction, now is the time to seek pre-approval for a home loan. Pre-approval gives you a conditional amount the bank is happy to lend to you on finding the right property.

Our lender will guide you through the application process.

3. The law

You’ll need to organise a solicitor or legal representative to handle the legal aspect of buying a property.

They’ll fill you in with what documents you’ll need to supply, and you’ll be happy to know this whole process is generally quite straight-forward.

4. Make an offer!

You’ve picked your favourite home from your shortlist, you know what you can afford, and you know what the bank is happy to lend to you.

So, what are you waiting for? Make an offer and negotiate until you agree on a price.

5. Property valuation

Once you’ve agreed on a price your lender may need to arrange to have the property valued. This valuation is done by an independent property valuer, not a real estate agent.

6. Insurance

It’s time to think about protecting your new home. It’s important to insure the home you’ve agreed to buy during the settlement period.

Your lender can talk to you about different insurance cover to protect you and your property.

7. Before settlement

Buying a home is exciting. Moving in? Not so much.

There’s plenty to keep you busy – electricity connections, cleaning, moving furniture and bribing friends to help. And, if you find yourself renting because you’ve sold and settled your current house before you’ve bought and settled your new one, you’ll be doing it all again soon!

Regardless, your lender can give you a handy checklist of things you’ll need to do so nothing slips through the cracks.

8. Settlement day

Congratulations! Your next home is now, simply, ‘your home’.

Whatever your motivation for buying, today marks the beginning of the next chapter of your life.

Enjoy it.

Note: This article contains general advice only. Readers should seek a trusted professional’s advice on financial matters.