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8 most time consuming aspects of purchasing a property

Purchasing a property requires a fair amount of dedication, planning and organising, which can become quite time consuming. If you are about to embark on the process of purchasing a property, here are 8 time consuming aspects to look out for.

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Budgeting

This will most likely be your first step and is one to be handled with great care and consideration. Although you may find yourself feeling like you’re in a black hole, filled with numbers and percentages, taking the time to budget carefully will pay off in the long run. By doing this, you’ll be able to decide upon what you can and cannot afford, gather an idea of what your home loan could look like, along with establishing and preparing for any unexpected costs that will indefinitely arise.

Getting your finances together

young couple managing finances By this we mean taking care of your credit history so that it appears at its best. This is the time to pay off any outstanding debt you may have, making sure all your bills are paid on time, or see a credit score specialist if need be.

Although tedious and time consuming, it’s incredibly important to remember that your credit history will be investigated by lenders when you decide to take out a loan, and could potentially decide whether or not you actually get the loan.

Need some help? Have a look at our guide to keeping your financial planning on track.

The actual saving bit

One of the most obvious aspects that will be time consuming is actually preparing the funds required before requesting a loan.Generally, before you apply for a home loan, the lender will typically ask for a minimum 20% deposit of the entire loan. Gathering your required deposit amount will take time, but, the more you have ready to put down, the smaller the home loan repayment you will be asked to make.

Preparing the paperwork

mountain-paperwork Before you even walk through the doors of a bank or lender, spare your sanity and gather all required documentation beforehand. This can range from your driver’s license to your tax returns from the last two years.

However, it is impossbile to keep track of everything and your lender may ask you for something you may have missed, but by taking the time to organise everything you can remember before approaching a lender, it’ll make the process move a lot more smoother.

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Selecting a lender

This decision should not be made on a lazy day. Choosing the right lender for you will require a great deal of time and effort, and here at Lendi we’ll make this bit easier and faster for you. When it comes to this aspect, it’s best to windowshop for a lender as you’ll be able to get a better idea of what exactly you are being offered in terms of deals, interest rates, and any additional costs lenders may choose to throw at you.

This could also mean investigating various aspects of a loan, such as the offset, extra repayments or interest only or interest + principal loans. This way, you can develop a pros and cons list for each lender you choose to see, before ultimately selecting the one that is right for you.

Lendi compares loans from over 30 major Australian lenders. Find a rate in seconds.

Researching the market

young-people-using-phone-in-cafe If you’ve successfully managed to secure a loan, now comes the time for even more research. You must put aside time to research the market. This can mean looking into your area of interest, determining the future value of a property and even where the area is situated. By this we mean whether the property is near a school, hospital, or shopping centre.

If you find that your desired area is close to these communal aspects, it’s best to be prepared as you may be looking at a higher purchase price as these areas tend to be the most popular. Don’t be afraid to be picky and thorough as this a decision that will stay with you for a long time. There is no rush when it comes to finding your dream home.

Wondering if a neighbourhood is any good? Have a look at these 9 ways to learn about a new neighbourhood.

Inspections

Before going to auctions, you can choose whether you’d like to undertake a ‘pre-purchase’ inspection, and just like the name suggests, it’s an inspection conducted prior to purchasing. Although this means more research and organising, it may be the difference between going ahead with a property or not. Organising a ‘pre-purchase’ inspection will allow you take into account a number of defects that could be associated with the property, such as a faulty roof or cracking in the walls.

By collecting this information beforehand, you may be able to even negotiate a lower price for the property, before moving on to repair the damage yourself.

Waiting for the auction

property-inspection-stairs If you decide to go to auction instead of purchasing a property through alternative measures, waiting for the actual auction date to come around can feel time consuming in itself, especially if you are more than ready to purchase your dream home. Instead of sitting around, use this time effectively to gain an understanding as to what exactly you’re getting into.

Randomly attend an auction in the meantime to properly immerse yourself in the environment you’ll soon find yourself in. Not only will you have an advantage when the time comes, you’ll understand how to bid effectively along with feeling confident and prepared.

Here at Lendi, our goal is to make your purchasing experience run as smoothly as possible. Kickstart your journey to owning your dream home today.

Tags: first home buyer, new purchase, auction

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Lendi is a privately owned and operated Aussie business. Our mission is to provide Aussies with the right experience when choosing a home loan from our panel of lenders including ClickLoans, a related body corporate of Auscred Services. Although Lendi compares over 1600 products from over 35 lenders, we don't cover the whole market or compare all features and there may be other features or options available to you. While Lendi is 40% owned by founders and employees, we have also been supported by some great minority shareholders including Bailador, Macquarie Bank Ltd and a number of Australian sophisticated investors. We have an independent and founder led board.
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EXAMPLE: This example is current as at 20th October 2016. A Click Loans Online Principal and Interest Loan of $150,000 over 25 years has monthly repayments of $767. This is calculated based on the interest rate of 3.69%, comparison rate of 3.69%, upfront fees of $0 and annual fees of $0.
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