The process of buying a house can be daunting, even more so during our current climate. Whether you are investing, upgrading/downsizing or a first home buyer, sorting out your finance is a crucial element during the initial phases of property acquisition.
Although there is uncertainty, the Adelaide property market has proved to be steady and with the right preparation you can secure that perfect home.
How to navigate through financing a house purchase during Covid-19
With some help from our friend, broker Sally Johns from Fresh Home Loans, we have put together a list of the 5 key areas to focus on to ensure the finance portion of your property purchase is as easy as possible.
1. Consistency
Monetary consistency is key to demonstrate you have the ability to save.
Sally expressed that now more than ever lenders are focusing on “income consistency”. This means having a budget and understanding the direction you want to proceed is essential to obtaining finance approval. How much the banks are willing to lend is determined by how much money you currently have to contribute and what you can repay each month.
Therefore, speaking with a broker regarding spending and saving habits will allow you to develop a precise plan moving forward in order to move through the financial process of property acquisition.
2. Stability
Pre and post COVID-19 saving expectations of having 10% (minimum) of the total amount of funds needed to contribute to the overall scenario remain.
This figure covers both the deposit as well as fees and charges of purchase. Lenders, in conjunction with income consistency, are also focusing on stability. This factor is largely determined by employment security as this provides evidence of regular income and saving habits. Sally expressed there is “good market conditions” so if you have consistency of savings and job stability there is “no reason not to buy”.
If COVID-19 has negatively impacted your job and you are feeling uncertain about your situation as to whether you are ready or what is needed in order to proceed with this process, speak to a trusted broker. Fresh Home Loans understand what the banks are looking out for and can help you understand your own situation and put you in the best position to buy.
Having your finances in order prior to application will make the process more effective and successful. All brokers follow the responsible lending legislation, which means all advice “has to be deemed to be responsible lending practise” therefore all suggestions will be within your best interest in accordance to the current climate.
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3. Market Research
It is important to do thorough market research and understand what you want and your own personal situation.
Recognising the direction you want to take can then be communicated with a trusted agent who will be able to identify further market trends and suitability of your needs. All agents at OC are continually updating their knowledge of changes within the market and can give you insight into the options available, accommodating your position.
4. Professional engagement
Engaging professionals within the field such as a trusted agent and finance broker, will allow you to develop a plan that suits your situation, especially taking into consideration changes enforced by COVID-19.
Brokers understand that there is a no one size fits all approach to finance and purchasing property. Fresh Home Loans are experts in the field of finance and are equipped with the knowledge of economic changes due to COVID-19 and are available to speak through any hesitancies and concerns.
5. Tailored solutions
As previously stated, there is no one size fits all approach to purchasing a property, therefore engaging a trusted broker to help guide you through the financial process is key for success.
It is also important to sustain engagement within the market, particularly buyer alerts for off market & new releases to remain up to date with properties being released. Communication between both an agent that specialises in the desired area of purchase and a mortgage broker is essential to understand your own personal position to decide which option is best for you.
Click here to sign up for buyer alerts.
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Although the current climate is one of uncertainty, the Adelaide property market has proven to remain stable. Therefore, if you are in a strong position of financial consistency and stability there is no reason to not buy within these market conditions.
If you are wanting to buy, speak to our trusted agents or alternatively engage with Fresh Home Loans to help you develop a plan that allows you to buy the perfect home.
FRESH HOME LOANS
For more information about finance and Fresh Home Loans, click here.
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MAKE IT HAPPEN™
Alex Ouwens and Nathan Casserly have a genuine passion for real estate and love to help people achieve their goals and dreams through property. Find out more about OC here.
Interested in a career at Ouwens Casserly Real Estate? Check out our opportunities here.
