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Questions you should ask before buying a home?

Buying a House
Questions you should ask before buying a home?

Buying a house, especially for the first time, can be an extremely exciting prospect. You could possibly be making the transition from renting or have saved up a considerable amount of money to put towards a deposit. Regardless of your reasons to buy your home, there are key decisions you need to make before you even start looking.

The following has been devised to give you an idea of what you need to think about before making any decisions on purchasing a home:

1) Can I afford to buy a home?

An obvious and important question. You of course need a considerable amount of money to buy your dream home. It’s likely that if you are reading this article, you have an indication that you can. Or you possibly have a budget in mind. Most mortgage lenders calculate the amount they are prepared to lend on your total household income. They will look at your financial commitments such as credit card payments and utility bills, focusing on how much you have left over to pay the mortgage back.

Purchasing a home is likely to be one of your biggest financial commitments, so you need to know you have formulated a realistic budget. Don’t stretch your finances so much that you can’t afford to do anything but pay your bills. Attempt to make cutbacks where you can and don’t forget to consider the set up costs.

2) Who do I contact?

Locate a property solicitor to help you carry out the legal processes of the house buying process. They will draw up contracts and papers that will protect you if your situation changes. For example, if you are purchasing a house with a friend, a property solicitor will construct an agreement contract in case either one of you decides to leave in the future.

3) What is the right mortgage for me?

A mortgage is essentially a loan. You need to pay back the amount borrowed to you in addition to the interest charges. Your mortgage lender will discuss with you what options you have, depending on your budget. There are a few incentives offered by several mortgage lenders so it is a good idea to understand the basics. These include: early repayment charges, opportunities to pay more towards your mortgage to reduce your balance and cash back options. It can take a few weeks to arrange a mortgage so don’t delay, but do choose carefully for the right one that suits you. If you are using the assistance of a specialist buying agent they should insure that they are fully aware of your requirements to insure your mortgage is arranged promptly.

4) Where do I want to live?

The area you choose to live is almost as important as the budget itself. As mentioned earlier, purchasing a house is a large financial commitment and so you want assure you can see yourself living there for a while. Although you might not realistically be able to buy your dream home straight away you could think about essential features such as: transport links, proximity to schools, off street parking, central heating and so on.

About the Author:

Finding the right type of property in your chosen area can be an extremely time consuming and fruitless process when doing it on your own. I’m John Savvy and I run Propsavvy.com to assist the first time buyers and investors alike to buy property in their chosen area with amazing efficiency whilst saving tens of thousands of pounds in the process.

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Making an Offer on a UK Property

Buying a property in UKWhen you are confident you have found the right place property you can make a formal offer on it. If you are dealing with a professional property buying agent instruct them to take control of the buying process to save you time an hassle and insure the best possible price when buying alternatively if you are dealing with an estate agents you may be given the option to pay a holding deposit to the estate agent, held on behalf of the buyer until it is time to exchange contracts. This will be refunded if the seller pulls out of the deal.

You will need to fill out a formal application to your chosen lender for a particular mortgage. The lender will need information about the property and yourself. They will make checks that will consider whether you are able to pay off the loan off a long period of time and that the property is in a good condition. This is usually assessed by a qualified surveyor.

What does a surveyor do?

You need to know you are getting good value for money and your lender needs to be certain the property is suitable security for a mortgage. The lender will commission someone to evaluate the property. The valuation isn’t particularly thorough so you need to consider a more detailed inspection, a survey called a Homebuyer’s Report will do this for you, or if you want to even more meticulous a full structural survey. The Homebuyer’s report gives a good general overview of the property. A full structural survey goes into more depth and is advisable for considerably older UK properties.

Advance

The lender will make a mortgage offer based on the valuation of the property or the purchase price –whichever one is lower. Once you have agreed to this offer the legal procedures need to be completed before the property finally belongs to you.

What is the role of my solicitor

The main job of your solicitor will be the legal transfer of ownership of your new home. Before engaging with any solicitor, ask them first how much they will charge for their service and then shop around for quotes. The cheapest deal isn’t necessarily the best as these can sometime have an impact on how well the solicitor does their job well.

When contracts have been drawn up and agreed and your solicitor has received your mortgage offer, then contracts are exchanged. At this point the price is fixed and the purchase is secured. A 10 per cent deposit is normally required at this point, but this is negotiable if, for example you are borrowing more than 90 per cent loan to value. When you finally own the property, it is usually one month from the date of exchange, but it can be shorter or longer depending on what both parties agree.

The feeling of purchasing your own property is indescribable. Making an offer and it being accepted is a long process, but well worth it if you go by it in the correct manner. All you need to do thereafter is to move, which in itself can be an even bigger worry.

Author Bio:
John Savvy is a professional buying agent working on behalf of property buyers & assists them in climbing the property ladder. If you need any assistance to buy property in UK, I’m always there at your service. You can contact me @ 02085175550 or else visit: www.propsavvy.com