Buying a home can be easier the second time around, as you know what to expect. However, if you are selling your current home at the same time there are few extra steps you need to consider.
Reasons for buying
Consider the reasons you’re moving and the features you’re looking for in your next home. You may need more space for a growing family or want to downsize to better suit your lifestyle. Many people buy a new home to move closer to their family, job or great schools. If you’re happy with the location of your current home, you could consider renovating your home as an alternative. We can show you how.
Using the equity in your current home
Equity is the difference between the market value of your property and the amount you still owe on your home loan. If you’ve made extra mortgage repayments over the years or your property has increased in value, you may be able to access the equity in your current home and use it as a deposit for your next home. We can show you can use this property as security for the loan on your next property.
Understanding the costs
If you bought your first home a while ago, there may be additional costs that you haven’t considered, or selling costs that you haven’t had to deal with before. These may include bridging finance, stamp duty, real estate agent’s fees and moving costs. We help you understand what it will cost to buy your next home will help you stay on top of your finances every step of the way.
Work out how much you can afford
Buying your next home should help you achieve your financial goals, as well as give you the lifestyle benefits you’re looking for. Once you know how much equity you have in your current home and the costs involved in buying a new home, use our calculators to work out how much you can borrow and what your repayments will be.
Pre-approval for your home loan
Before you start looking for a home or investment property, consider applying for a pre-approval. That way when you find your perfect place you’ll be ready to make the move with confidence. Pre-approval is ideal for showing vendors that you’re serious about making an offer and gives you a good understanding of what you can afford. We can help you with this.
A bridging loan makes buying easier
If you’d like to buy a new property before you sell your existing one, Bridging Finance could provide the funds you need to secure your new home. It’s suitable for customers who have sold their existing property (but not yet settled) and require finance for the deposit on a new property. We canb show you how to start looking for a new home even if you haven’t settled on your current home.
Deposit Guarantee Bond is an alternative to cash
A Deposit Guarantee Bond is a guarantee that you’ll pay the deposit money at settlement, instead of upfront. It’s a convenient alternative when your deposit money isn’t immediately available, like when it’s tied up in your current home, a term deposit or other investments. A Deposit Guarantee Bond allows you to attend multiple auctions with confidence or can be used for private treaty sales.
Your personalised borrowing plan
At Craig Tracey Lending we take the time to understand what you need and then give you a personalised borrowing plan. This has all the information you need in easy to understand language. Contact us now.