Buying a home is usually the largest investment of any family or perhaps you are buying an overseas property for investment purposes. Let’s look at what aspects you need to look at to factitive a great purchase and gain solid investment for your money.
- Consider whether you should be buying a house at all.
There is an attitude in the family should by all means own their own home. Home ownership means stability and pride. However, make sure you can afford the mortgage with your current salary.
2. Research the Neighbourhood.
When you find you are interested in a particular home, it’s time to play detective. Walk through the neighbourhood, visiting pubs, parks, school yards and homes at different times of day. Check that homes are well-maintained, that cars are kept up and there aren’t any derelicts lining the streets.
- Check Out the Area with the Neighbours.
Many neighbours can give you valuable information on the particular home or the neighbourhood. Check with those who are not next door, but some distance away. They are likely to be more honest about the area and won’t be either friends or enemies with the sellers. You will also have the advantage of meeting the people you will be living with.
- What Is the Potential for Resale?
It is possible you wish to live in your new home until you die and then leave the property to children. If this is not the case, then you must take measure of the resale value of the property. You may need to put some work in on the house.
If the home has been on the market for quite a while, you had better figure out why, because it will affect your ability to sell the home in the future.
- Bump Up Your Credit Scores.
Make very sure that your credit scores are as error-free and up to the demands of your preferred lender. Little mistakes that are easily overlooked can take your out of the running. Check the free websites that can give you the current credit rating.
- Arrange with Your Lender a Mortgage in Principle.
You probably won’t be able to arrange a mortgage unless you have a particular property in place. Instead, lenders offer what is called a “mortgage in principle (MIP).” This is very helpful in that it lets you know how much the lender is willing to allow you to borrow, as long as you find a suitable property within a specified time. However, the MIP is not a guarantee.
- Look at other finance options such as Bridging Finance to secure the property you want.
Bridging loans are a short-term finance option, typically used by property buyers to ‘bridge’ the gap between the sale of their current home and completion date on the purchase of their next home. You might need that window to sell your current property but have spotted a great buy that you need to move quickly on. This could ease the headache of financing your move but you must tread carefully.
- What Is the Actual Cost of Buying the Home?
Owning a home costs more than just the monthly mortgage payment. Remember fees can add up to thousands of pounds. From the Mortgage Arrangement Fee to the cost of removal and new furnishings, the cost of the home will likely be thousands more than the “sticker price.”
- Typical Home Buying Time Line for England and Wales.
The time it takes to find your new home and arrange for its purchase will likely be longer than you think. It will take you time to find a property you want. It will be wise to narrow your search to two or three neighbourhoods, but don’t be too certain you must be located in only one particular place.
- Put in your offer quickly.
Once you have found your desired home, put in an offer. This lets the seller know how much you are willing to pay, plus any other conditions. Once your final offer has been accepted, you will need to arrange for a survey of the property and your solicitor should research any legal issues.
At the time of the exchange of your money for the deeds and keys, it will take just a few weeks until the sale is complete.