A big fat hearty congratulations mate! You are ready to buy a new home in this great land we live in – the United Kingdom. This is no easy feat – it is a great adventure you’re about to embark on. As we want the home buying process to be as smooth as possible for you, there are somethings you should keep in mind.
Here are some useful pearls of wisdom to help you get started on your journey of buying a new home.
The last couple of years have been a witness to a slow-down of the real estate bubble with financial service providers hardening their lending conditions and the sum required for house deposits going up. This has become a mighty challenge for potential house procurers to gather the required funds and has made them wary as well whether to invest or not in the property market given its random fluctuations.
You can obtain key insights into the real estate market from an experienced, local mortgage advisor who will guide you on the right path. Not only will they give you all the information you need but will save you from a hassle of drowning in a flood of unnecessary data that may only confuse you with its jargon and complicated language. You can share your requirements and your budget with him as well – so he can make the right recommendations.
Morbid as it may sound, composing a will in your lifetime can save you a serious amount of posthumous trouble. A lot of prospective property purchasers tend to be single – so if you pass away without a partner or your own offspring’s- your parents will inherit your house. If they’re also no more in this world, then your siblings will benefit and obtain it. If you’re a single child, then your grandparents will get your house. Like this – it will be passed around the family until a rightful owner is found.
Married or buying with a partner? Wonderful! Then you can both decide what kind of percentages you will both own. It has to be validated by a signed, certified will that is kept updated throughout your lifetime.
After all, this is your home and you want to leave it in the right hands.
It is advised that you speak to your mortgage service provider and get an “agreement in principle” of the amount you’ll be permitted to borrow to fund a property. This will give you a clear idea of the costs involved in buying a house and clearly demarcate fiscal boundaries of house prices for you.
Ruban Selvanayagam from ‘we buy any house’ specialists Property Solvers underlines: “the Mortgage Market Review (MMR) of 2014 made the whole application process significantly more complex. We always advise buyers to give themselves plenty of time to anticipate a range of inevitable hurdles.”
Home sellers will also know that they can trust you as you’ll have a conditional mortgage offer in your hand. They’ll know that you’re good for the deposit as well. A lot of real estate contracts tend to fall through whilst in process that tends to put vendors in loss as they’ve invested a huge amount of their time and effort in securing such deals. They take off the property from the market and stop entertaining other buyers as they believe they have found one – in you!
Of course, in order for a mortgage service provider to be able to give you a written conditional offer – your credit history will be scrutinised and checked. Once your creditworthiness has been reviewed, it will be decided whether you’re a good credit risk or a poor one. Hence, another thing you must do is to make sure your credit background is strong, so it does not stand in the way of you obtaining the best mortgage rates possible.
The property that you are intending to buy must be one that you’re absolutely in love with! This must be an appropriate place for you and your family – where you can visualise yourself living in for the next few years to come.
Sure, your home is an investment as well – but you must not only see it in that light only. The property sector is unpredictable where price vacillations occur all the time. You can always renovate or add facilities to your property to escalate its sale price. However, if there is a recession and the time to sell is not right – then we can only hope that you are super happy in your current home and have no problem waiting till market conditions improve.
As mentioned earlier, the real estate market is going through a slump and mortgage lenders have increased the conditions for lending out loans. They have increased the amount of deposit required. So, cut down on dining out, cinema trips and vacations and allocate every possible sum you have towards saving up for a hefty deposit.
Great, your offer on that perfect home has been accepted! You cannot wait to move in and start setting up your new home to reflect your lifestyle and personality. Hold your horses’ mate! How about getting a Homebuyer’s Report? A little tip for you: go beyond the basics of a general survey. By doing so, you’ll get to know what flaws may lie with the property beforehandand will highlight any potential red flags. Sure, you may be spending extra money on this report, but you’ll save yourself from the future possibility of spending thousands of pounds. For instance, if there is a problem with the existing boiler, you can get a new one and protect yourself by buying boiler insurance. To find out more, click here. This report will cost you anywhere from three hundred to one thousand pounds in excess of VAT.
No matter how much you fall deeply in love with an expensive property – if it is outside your financial parameters, do not get it! Remember that getting a house is not just going to include its price- there are taxes, legal fees, maintenance costs and many more variables involved. You need to make sure that you can afford all the upcoming costs without bankrupting yourself in advance.