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What should I know before I buy a house? There comes a time in everyone’s life when this question floats in your mind. It often pops up around the same time that you realise its time to emerge from the rental market and purchase your own home. Whether this decision was brought on by the expansion of your family or the need to escape your housemates there is a lot more you need to know then the television show Location Location Location might suggest. To give you a little more insight, here are four things to hold in the back of your mind as you hunt for your perfect house.

1. Your credit score (Something you should know but probably don’t)

If you are planning on buying a house and you don’t have an incredibly large savings account you will most likely need a loan in the nearish future. Because of this, it is crucial that you have a respectable credit score before you begin planning the width of your pool or whether or not your hot tub will be above ground or not. It is also in your best interest to discuss with your bank about getting pre-approved, this will give you a very clear understanding of the borrowing potential you have and will allow you to start having an educated look at possible properties.

2. Your lifestyle will change

Think about your weekly expenditures, where does your paycheque go? Most people spend the bulk of their income on basic living expenses such as food, gas, rent, utilities and caring for any pets or dependents. It is important to understand that once you commit to a monthly mortgage budgeting will most likely become a necessary part of your survival.  

3. It may affect your future savings or plans

In life we all have goals, and for most owning a house is a major goal. However, there are other goals that we have in life that also require finances, such as travelling the world or raising children. Remember that when deciding your budget to keep in mind all of your goals and don’t overspend on your house.

4. Compare different mortgage options based on your needs

Shopping around for the right loan for you is crucial. Make sure you engage with many banks to find the right mortgage loan with a reasonable interest rate. The banks will also help determine what mortgages and interests rates you can afford, this will instantly help you to narrow down homes that are in your price range.