Looking to jump on the property ladder but haven’t quite got enough funds saved up yet?
If you’re sick of sitting on the sidelines and want to own a property as fast as you can then there are a number of ways you can speed up the buying process.
Here are a few ideas:
Look outside the major cities
While property prices are starting to stabilise in Sydney and Melbourne, there’s no denying that affordability in these cities is still a major issue for a lot of home buyers and it’s a problem that’s not going to go away any time soon.
Because of this many savvy buyers are looking at their property options in regional areas, either as an investment or as a lifestyle change.
Places like Mudgee have been seeing a surge in buyers from Sydney where people are sick of trying to save for a hefty mortgage and want to make their home ownership dreams become a reality.
Talk to the bank of mum and dad
If you’re struggling to save a large enough deposit then your parents may be willing to help you out either financially, or by offering to sign on as a guarantor.
A guarantor is someone who will take on responsibility of the loan should you not be able to make payments, which makes it less of a risk for the lender.
Having parents to help out can be a great way to get a leg up in the market, however this option isn’t available for everyone.
Lenders’ Mortgage Insurance (LMI) is often seen as something that people want to avoid, but it provides a way to quickly jump on a property opportunity when you haven’t got a large enough deposit saved.
LMI is a premium added on top of your mortgage payment to protect your lender in case you can’t make repayments. It is generally paid as a one-off sum when you take out your mortgage, or its sometimes added to your loan repayments.
Having to pay extra than you would otherwise need to may not sound appealing, but it does help people get into the market faster so they can snap up property deals when they come along.
Get expert help
One of the best ways to shorten the home buying process is to have an expert team to help you along. Talk to a mortgage broker or lender as early in the home buying process as possible so you understand your borrowing capacity and what you need to work towards. It can also be worth seeking the help of a buyer’s agent to help you find and negotiate the right property for you.
If you’re after further advice about buying property in Mudgee then contact the team at McGrath Central Tablelands.