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Use This 6-Step Checklist to Become a Savvy and Successful Home Buyer

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Use This 6-Step Checklist to Become a Savvy and Successful Home Buyer

As purchases go, home buying is one of the most significant you will ever make. It’s also one of the most complicated. With some planning, you can be a savvy and successful buyer.

Here is the 6-step checklist you should be using when buying a home:

1. Know Your Credit Score

Also known as your FICO score. This score matters when it comes to qualifying for a loan. The better your score, the better your financing opportunities. You can check your score for free on Annual Credit Report.com. Before you purchase a home, it’s critical to understand what you can reasonably afford. There are online calculators that can help estimate some numbers for you. It’s particularly important for first-time home buyers to understand the financial side to purchasing a home.

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2. You’ll Need a Down Payment

A common problem some home buyers face is having enough for a down payment, particularly if they’re young or first time home buyers. You will need to put down between 5% and 20% for a house.

The online financial calculator, as well as a reputable mortgage broker, will help you calculate how much you will need for a down payment.

3. Meet With a Mortgage Broker

Early on you should meet with a reputable mortgage broker to be pre-approved for a loan based on your FICO score, savings, and income. Other factors come into qualifying for a loan, and a good mortgage broker can explain these to you so you can begin to plan accordingly. Generally, most lenders believe your mortgage payments should not total more than about 1/3 of your gross income.

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Some banks think it can be closer to 28% including mortgage, insurance and taxes. Always discuss closing costs both with the mortgage broker and later with your real estate agent. Sometimes they are negotiable, but you won’t know unless you ask!

4. Interview Real Estate Agents

It’s always smart to meet with several real estate experts. Ask friends and colleagues for a recommendation.  A good agent will be thorough, ethical, and help you get the best possible purchase price.

Be prepared to have frank conversations with them about your home needs, ideal neighborhoods, schools, and, of course, your price range. It’s important to note that an ethical realtor acts on your behalf, not the seller’s!

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5. Do Your Research!

If you haven’t already done so, do your research on neighborhoods and schools, if this is relevant to your family. There is a lot of information you can research online. These three websites are a good place to start: Zillow.com, Trulia.com, and Realtor.com. All provide detailed information.

6. Order a Home Inspection

When you are buying a home, it’s critical to ensure that it is safe, and there are no hidden surprises once you’ve moved in. A thorough inspection by a reputable and skilled inspector is a must, and in some areas of the country, it is required by some lenders. A qualified inspector can conduct a variety of inspections including a pre-purchase home inspection and others tests such as air-quality and redo testing if needed.

You should always ask to do a walk-through with your home inspector to see exactly what he sees and what he is looking for. This will help give you a better overall picture of the home. You should write down questions about the home and ask him during the walk-through, this infographic breaks down the essentials of what you need to know as a homeowner as far as the mechanical systems as well as the different pertinent shut-off valves in your home. An inspector uses a comprehensive checklist and reviews all of a house’s major systems such as electrical and plumbing. Order your inspection as early as possible in the due-diligence period in case an inspection uncovers any issues and you need to renegotiate your initial offer.

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Conclusion:

These six points underscore the importance of being a well-informed buyer. Just like any contract negotiation, it’s important to understand all of the information before you purchase a home.

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Last Updated on January 27, 2022

5 Most Affordable Australian Cities For Students

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5 Most Affordable Australian Cities For Students

With high standards of education, a multicultural community, and laid-back lifestyle, it’s not hard to see why so many students love Australia. However, one thing Australia is also known for is being the world’s most expensive country to study in as a foreign student.

For those willing to look beyond popular cities like Sydney or Melbourne, however, study abroad doesn’t have to be unaffordable. Check out these five more economical cities that still make for great student living.

1. Gold Coast

If you’re looking for a more affordable place to buckle down and study while still enjoying glorious beaches and a vibrant nightlife, the Gold Coast is an excellent choice. While it has no shortage of restaurants, cafes, bars, and natural attractions, the city is also well-known for its quality of education.

Gold Coast is home to Bond University, which has Australia’s highest rating for overall graduate satisfaction, but also some of the country’s highest tuition fees. Fortunately, it hosts campuses for Griffith University and South Cross University as well, both of which have affordable options for international students.

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When it comes to off-campus accommodation, there are plenty of choices, from shared housing to homestays. Real estate sites like Flatmates can be useful for finding options within your budget.

2. Wollongong

Wollongong’s close proximity to Sydney (80 km) makes it a popular choice for students who can’t afford the high cost of living in Australia’s largest city, but still want to experience all that it has to offer. Wollongong itself is a lively city as well, and is rated as the country’s most livable small city thanks to its gorgeous beaches and lively city centre.

The University of Wollongong is one of Australia’s top universities, with a comprehensive academic program, international research reputation, and high graduate employment rates.

Due to a lack of on-campus parking, most students prefer to walk, cycle, or use the free bus service that operates between the university and city centre. Living costs are quite reasonable in Wollongong, and sites like Gumtree can come in handy if you’re looking to split housing costs or even score some second-hand furniture on arrival.

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3. Hobart

Hobart is the capital of Tasmania, the second oldest city in Australia, and also the cheapest city for university students to live in. While it might not be as happening as cities like Gold Coast or Brisbane, its striking natural beauty and slower pace of life make it a great place to block out distractions and focus on studying.

The Hobart Universities sector is based on a single institution, the University of Tasmania, which is consistently rated among the top ten universities in Australia and has a large population of students from abroad, with more than one in five students being international.

Although public transport in Hobart isn’t as convenient as could be, there is plenty of student accommodation available to make up for it. Students often live in shared houses near the university so they can simply walk to class. If you’re looking to rent a shared house or room in the area, Easy Roommate can be a good place to start your search.

4. Adelaide

Of Australia’s major cities, Adelaide is the cheapest to live in. That, along with its spacious layout, clean and green atmosphere, and beachside attractions make it a great place to live and study. It’s also regarded as the food and wine capital of Australia.

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Adelaide has three universities, including the University of Adelaide, which is ranked in the top 1% of universities worldwide; the University of South Australia; and Flinders University. Its integrated bus, train, and tram transportation system connect all parts of the city and make it easy for students to get around.

Naturally, the cost of accommodation is lower outside the city centre, and depending on which university you’re studying with, the outer suburbs could be more convenient as well. Check Study Adelaide for information on a range of student accommodation options, from independent living to homestays.

5.  Brisbane

Brisbane is the capital of Queensland and Australia’s third largest city. Unlike Sydney and Melbourne, it’s known for being one of the most affordable cities in Australia, which makes it a good choice for students. It’s also known for its pleasant subtropical climate and wide range of entertainment options.

Brisbane has three major universities: the Queensland University of Technology, the University of Queensland, and Griffith University (which accepts the most study abroad undergraduates). The inner city is well-connected by public transportation, although cycling is popular as well, and there are plenty of cycle paths that make it easy for students to get around this way.

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Students typically live in and around the inner suburbs, where the bulk of Brisbane’s teaching facilities are located. If you’re looking for convenient accommodation off-campus, you can check sites like Urbanest or The Pad.

Featured photo credit: Bhavesh Patel via unsplash.com

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