Buying a house is hardly a breeze, especially for first-timers. 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 how much deposit you need to prepare.
Before you check out properties, it’s important that you have saves enough to make the deposit. In general, you should save at least 5% -20% of your desired home’s cost. Saving over 5% means you have access to more cost-effective mortgages that you can find on the market.
Know how much you need to pay for other home-buying costs.
Aside from your monthly mortgage payments, you need to pay other costs as well. Among others, these include solicitor’s fee, building insurance, mortgage arrangement and valuation fees, etc.
Be sure you can afford the your monthly payments.
It’s smart to have a budget all set up before you start looking around for a property to purchase
It’s always wise to set a budget prior to looking for a house to buy. The approval of mortgage applications has now become a very strict process. Lenders will do their research to know if you have the funds to pay the mortgage, as well as ‘stress test’ your financial status in cases your circumstances changed – for example, if you had a baby or went enter retirement.
Explore government-backed affordable home-buyer schemes.
Many government-supported schemes offer financial assistance to home buyers. 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.
Look for the right mortgage.
There are various mortgage deals you can pick from, so it can be tricky for you to choose one. For one, you have to consider a lot of things, so it’s always a good idea to do your homework and talk to professionals, such as mortgage brokers.
Difference between Freehold or Leasehold
If your plan is to purchase a house, you’ll likely buy the freehold, which means you will own both the property and the land where it sits on. Buying a flat means you’ll be paying for leasehold, or paying for a share of the freehold.
Getting a Mortgage
No matter what mortgage you apply for, the lender will want to ensure that you are able to continue with the repayments, even if interest rates soar or there are other events that may compromise your financial status. 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 self-employed, you may have to provide tax returns and business accounts put together by your accountant for the last two tax years.