Buying your first property and taking that first step on the property ladder can be extremely exhilarating but also intimidating. We all recognize that buying a house is the largest purchase we will make in our lifetimes and the decision to take that huge step should not be taken carelessly. So to make things that bit easier for you, we have compiled a list of matters that you should take into consideration when buying your first home.
1. Is buying a property the right decision?
Prior to you proceeding, and committing to any monetary dealings, make certain you have weighed up the pros and cons of buying a property and renting one.
Buying a property is, potentially, a healthier long-term investment but you have to make sure that you have cautiously measured all of the expenses (even the hidden ones!) involved in buying a home and make sure you are in a comfy financial position to be able to do so.
2. Do you have enough money for it?
Different in days gone by, these days you are expected to obtain a 5% – 10% deposit to put down on purchasing your first home. With the average deposit being paid by first time buyers considerably more than it used to be, you must make sure that you have saved sufficient funds to get you past the opening hurdle.
3. Will you be able to get a mortgage?
Generally mortgage lenders base their decision on whether to loan you the funds to buy a house on your earnings, or your joint earnings if you are buying the house with, for example, your partner. Carry out some research first to make sure that you earn enough to meet the criteria for the mortgage amount you need. Finding out how much you are likely to be able to borrow, will deem what type of property you will sensibly be able to afford. This is a level-headed thing to do to shun the dissatisfaction of discovering you cannot in fact afford the dream home you have set your heart on!
4. Familiarise yourself with hidden costs
Do not be fooled into thinking that the lone cost involved in purchasing a house is the funds you have saved for the deposit. Unfortunately, there are plenty of additional expenses involved in the process of moving house counting stamp duty, legal fees, insurance costs, land registry fees, and removal fees. Familiarise yourself with these fees and make sure they have a position in your budget.
5. Do your research
Before you go forward and make an offer on a house, keep in mind the enormous commitment you are about to make so make sure you have completed your research into the property and the location in which you are buying. You can find out what to look for when viewing a property by visiting our blog post, 10 Things to look for when viewing a property. Don’t hurry into putting down a deposit on the first house you see, take the time to look at heaps of properties so that you find the one that’s right for you; if you are too busy with the kids, work or your jet set lifestyle, then find a good agent to do the leg work for you.
6. Question the sellers
What glitches are they conscious of that the house had previously – even if they’ve been fixed? An ice dam five years ago may have instigated water damage that has since been mended. But it’s good to know that the house may be prone to ice dams so you can take precautionary actions rather than find out the hard way. Learning the basement flooding was resolved by building up the landscaping in a specific area will stop you from leveling the ground there in future years. For more information on selling do’s and don’t, take a look at this… (Click)
7. Ask for utility bills
You may admire the Cape Cod architectural elegance or the high ceilings and walls of glass in a contemporary home – but those winter heating and summer cooling bills may thrust your monthly expenditures past affordable. Ditto for the water bills you’ll pay to uphold an immaculate landscape.
8. Pay close attention to taxes
Don’t just ask what the seller’s most recent tax bill was; ask what numerous recent tax bills have been. In certain areas, houses are re-appraised and taxed at higher rates often. That fantastic deal and decent investment may not appear quite so outstanding if the property taxes rocket year after year. Again, look at newspaper archives or talk to your Realtor about the way taxes are used in this area. In certain cities, schools are considerably funded through property taxes – which means you can count on yours increasing frequently. For more information on buying do’s and don’t, take a look at this… (Click)
9. Use the right property finder
Gone are the days when looking into estate agents’ windows were the solitary way to see how much people were selling a house for.
There’s an overabundance of property search sites out there. Remember asking prices are frequently madly optimistic, presenting what the seller wishes for the property, not what they’ll get.
Property Property Property
Property Property Property lets you compare homes on the market, including pictures, asking prices, descriptions and floor plans. Go to the Property Property Property website and search for an area and click on a property for details or register for instant alerts.
10. Get home insurance quotes before buying
Always get home insurance quotes before you exchange contracts to guarantee appropriate cover’s obtainable. This might flag up problems, for example, if the property’s in a flood-risk area. Comparison website like confused.com offers a good way to get the best price on the market.
Don’t think you need use your mortgage provider’s cover. If you pay for buildings and/or contents insurance together with your mortgage, it’s frequently a dreadful price.
No one home insurer’s cheapest, so the key’s capturing as many quotes as possible.