First-time Home Buying Tips
Home-buying is not easy, especially if it’s your first time. But there’s no need to be a real estate expert for you to do it right. Below are pointers that can be helpful:
Know the deposit amount you have to prepare.
Before you check out properties, it’s important that you have saves enough to make the deposit. Generally speaking, you have to try to save no less than 5% to 20% of the cost of the house you’re interested in. If you can save above 5%, you will be able to access a bigger range of economical mortgages that may be available on the market.
Know your other costs.
On top of your monthly mortgage payments, you have to pay certain other costs too. Among others, these include solicitor’s fee, building insurance, mortgage arrangement and valuation fees, etc.
Be sure you have the funds to make the monthly repayments.
It’s smart to have a budget prepared before you begin searching looking for a property. The process for mortgage approval has now become very tough. Lenders are going to do a background check to see whether you can pay the mortgage, as well as ‘stress test’ your financial standing as though your circumstances were different – for instance, if your business suffered or if there was an illness in the family.
Explore home-buying options supported by the government.
Plenty of government-supported programs help home buyers with their financial status. While you may use one of these programs, however, lenders will still take measure to ascertain that you can afford to pay off your mortgage.
Find a suitable mortgage.
As there are so many mortgage deals available these days, choosing can be a bit confusing. There are lots of considerations to make, for one, so it’s a must that you do your research and speak to mortgage brokers and other professionals.
Difference between Freehold or Leasehold
If you intend to purchase a house, you’ll likely purchase the freehold, meaning the house as well as the lad on which it stands. If you’re getting a flat, you’ll be purchasing leasehold, or a part of the freehold.
Applying for a Mortgage
Whatever mortgage you apply for, the company will want to be sure that you can keep making repayments, whether the interest rates go up, or if there are any unforeseen developments that would decrease your financial stability. To prove that you do have an income in the amount that you have declared, you may have to provide payslips and bank statements. If you’re a businessperson, you may be asked to prepare tax returns and business accounts in the past two tax years through your accountant.