So the time has come. You are ready to be a home owner. There are few things more rewarding than being able to have your own nest. But not so fast; there are a lot of important issues to think about before making the purchase. If you do your homework you can avoid a lot of headaches in the future.
Are You Sure You Are Ready?
First of all, reconsider if this is the right time for you to buy a home. Remember, selling a home these days is not easy. So if your job is not stable, then buying a house might set you up for trouble. Don’t just look at your job, but look at the overall job market. While your company might be stable, if a whole sector goes sour it could take you under with it.
There are some out there that argue that renting is better than buying. Look at rental options on a site like www.rightmove.co.uk and see what you can get. You might find a great deal that makes sense for your current situation.
Check Your Credit
You should do a self-credit check. There are many online resources such as Noddle that allow you to do this. If your credit score is poor, you might want to look into the causes and improve these before you buy. Good credit improves your mortgage rate. Also this is a good time to look at how much cash savings you have. The more cash you put down the lower your mortgage payment will be. If things don’t look so good, give it another year to save up.
Budget Issues
This is a good chance to check your overall as well as home-buying budget. What is the most you can pay per month on a mortgage? Are you spending any money anywhere that is not necessary? On the other hand, don’t think that you can live on crackers and water just so you can move into your dream home.
Other important costs to consider are moving costs, stamp duty, solicitors fees and VAT.So crunch all the numbers and come up with a budget that you can stick to.
Shop Around
This doesn’t mean just for a home. House hunting is the fun part, but mortgage hunting is just as important. Ask different lenders and compare prices and terms. You might be surprised to find significant differences.
Before you put your entire house payment budget on the line, don’t forget to include homeowners insurance in the costs. There are many that also recommend life insurance to go along with the purchase of your first home.Remember, if you pass away the debt will have to be paid by your loved ones. You can compare polices on this website.
Go Looking
Now that you have some solid numbers to work with, you can really start to look. It is best to get the numbers down before you set out because this will narrow your search. It will also prevent you from plunging into a property that is beyond your means.
Write down your priorities. Do you want a big garden or is the area under the roof more important? How many cars do you need to fit into the garage? Which areas of town are you interested in, and which ones do you want to avoid? It is a good idea to take along a less emotionally involved person (parent, sibling, friend, etc…)when you view homes. They might ask questions you overlook because you fell in love with the quirky kitchen or the workshop room in the basement.
Negotiating
Okay, so you found a good home that fits your price range. Now you have to make an offer. This can be tricky, but remember the price is just a guide. Find out as much as you can about the property and the owners before bidding. Don’t bid too low and insult the seller. On the other hand a high offer might lose you money. Things like time on the market, reason for selling and history of other offers can give you valuable insight before making a bid.Hereare some tips from experienced estate agents about how to handle house price negotiations.
Buying a home is an exciting experience. It is also a great opportunity to look at and trim your budget. Finally, the process is a chance to learn the art of negotiating the purchase of a property.
