Home-buying is not easy, especially if it’s your first time. 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. If you can save above 5%, you will be able to access a bigger range of economical mortgages that may be available 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.
Ensure that you can afford required monthly repayments.
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 are going to do a background check to see whether you can pay the mortgage, as well as ‘stress test’ your financial standing as though your circumstances were different – for instance, if your business suffered or if there was an illness in the family.
Explore government-backed affordable home-buyer schemes.
A lot of government-backed schemes provide home buyers assistance with their finances. 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.
Find a good mortgage.
There are various mortgage deals you can pick from, so it can be tricky for you to choose one. For one, there are so many things you have to consider, so you really have to do some research and even talk to experts, such as mortgage brokers.
Difference between Freehold and Leasehold
If you intend to purchase a house, you’ll likely purchase the freehold, meaning the house as well as the lad on which it stands. Buying a flat means you’ll be paying for leasehold, or paying for a share of the freehold.
Applying for 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 have the income you have stated, you may have to submit bank statements and payslips. 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.