Ways to Help to Make the Home Buying Process Easy For the First Time Buyers
Buying a home is perhaps the most expensive purchase or investment that is expected to do in your life, regardless of the location. Home buying process is often a daunting task, especially for the first time buyers. Hence, it is important to make the right choice and avoid mistakes that often convert the happiness of buying a home into a nightmare. This helpful guide highlights the main factors a first time buyer should consider when buying a home.
There are many aspects of the home buying process no matter wherever you decide to purchase a house. These facets need to be considered before the ideal home is found. Additionally, there are many important processes to take into account during the transaction.
Steps & Tips for Buying Home
Often the home finances experts always suggest the first time home buyers having limited funds to not to purchase a house unless you are 100% sure that you want to live in it. The young professionals who mostly move to new cities may postpone their decision of buying a home until they are sure about living in the city.
Once you have made the decision to buy a house, ensure to compare the price of your choice house with similar houses and apartments in the same area. Prices may vary depending on the location and amenities provided by the seller.
Check out the quality of construction materials and facilities to determine the price of a house. It is always safe to go for houses built by reputed builders or developers. You might need to pay a higher premium, however you can be assured of quality.
Arranging Funds for Deposit & other costs
After you find your dream home, it’s time to arrange the funds to purchase the dream house. As a first time home buyer, you may have insufficient funds. Home finances experts often recommend to start saving money even before you start searching the house of your choice. It’s better to save at least 5%-20% of the home cost you want to buy. It makes easier to apply for a wider range of cheaper mortgages.
Ensure Your Can Afford Monthly Repayments
Additionally, getting a pre-approval from home finances firm can help you make your payments promptly. It’s necessary to know that you may need to show the evidence of any outgoings to prove your income to the lender in order to get a pre-approval. Ensure that you can afford the monthly repayments before applying for the mortgage process.
Other Costs You May Need to Bear
Another important thing you need to remember is the other costs associated with buying a home. Besides the monthly mortgage payment, you may need to bear additional costs such as house valuation fees, stamp duty, lawyer’s charges, survey cost, removal costs, furnishing costs & building insurance.
Finding the Right Mortgage Deal
Often, you will find various companies offering luring mortgage deals to pick from. However, due to insufficient knowledge & many factors, it may not be possible for you to choose the right deal. Hence, it is recommended by financial organizations to do some research or speak to an expert in this area.
Freehold or Leasehold
When you buy a home, most likely you would like to own the land on which the house is built on. It means the property you want to buy should be freehold. And if you are buying a flat, then either it will be leasehold or a property into a share of the freehold. So, make sure what kind of property you would like to buy.
Application Process for Mortgage or Home Loan
Whichever home loan you apply for, still you will need to provide evidence of your debts, bills, living costs including clothing, travel, childcare, etc. to get approval from the money lender or home finances. Moreover, the financial organization may ask you to provide payslips and bank statements to check your income. In case, you are self-employed, you may need to show tax returns prepared by your accountant.
Guarantor Mortgage – an Alternative
Even you can opt for a guarantor mortgage, if you are struggling to get your first home mortgage. In this mortgage type a parent, guardian or any close relative can guarantee your mortgage. However, you shouldn’t take this alternative lightly, as it is legally bonded with your guarantor. In case, you are going through any difficulty, the guarantor will be held responsible to pay the mortgage.
To avoid any mistakes, it is recommended to talk with a mortgage broker to understand the complete process of buying a home, mortgage options and additional costs associated with it.