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Top five home buyer's tips

12:00 AEST Mon May 16 2011
Top five home buyer's tips
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By Hannah Nicholas,
MSN NZ Money writer

Buying a home is an exciting experience but also requires buyers to make important decisions. Here are our top five buyer’s tips to set you on the right road.

1. Obtain pre-approval
As a home buyer you should always get pre-approved for a loan. This way you will know in advance how much you can afford and what the lender will loan to you. Ask for the pre-approval in writing so you will be ready to act once you spot your dream home.

More advice: What is pre-approval and is it a good idea?

2. Consult the experts
Leave things such as building inspections and contract advice to the experts. Always obtain a land information memorandum (LIM) as well as building and pest reports, speak to the local council regarding any properties you are interested in and obtain necessary legal and expert advice from your solicitor.

More advice: What is a LIM and why is it important?

3. Choose the right location for you
The area you move into will become a big part of your life so it's important you make the right decision. Remember you can make changes to a house but you can't change its location. Always do your research and buy into the right area for you and your family.

More advice: Picking the right suburb for you

4. Don't buy over your limit
Banks will often lend over the limit you can comfortably afford so it's wise you always stick to your original budget. Consider your current lifestyle and areas where you can and can't cut back. Factor in future rate rises and circumstances that may affect your ability to make repayments.

More advice: Costly mistakes first home buyers make

5. Go with your gut
When it comes to home buying, trust your instincts. If a home seems right for you it's probably the one (as long as it's within your budget) but on the other hand if a property seems to be too good to be true (ie, a great home, in a great location at a great price), it probably is. Always go with your gut instincts and look into things when alarm bells ring.

More advice:When's the right time to buy