A house is likely to be one of the most exciting (as well as expensive) purchases that you make in your entire life. So you’re going to want to make sure that you get things right first time round. Finding a house properly will reduce your chances of experiencing problems in the process and means you’re less likely to want to sell up and move (and incur the expenses of doing this) soon.
If you’re a first time buyer, this can all seem a little daunting. But don’t worry – here’s a quick run through of the basic steps of buying to help you along the way.
Figure Out Your Mortgage
As you start to consider buying a house, it’s absolutely essential that you have a look through your own finances. Knowing the amount of money that you have available for a house will help to give you a better idea of what mortgages you can afford and will consequently be approved for.
It’s important to remember that mortgage is a form of loan, so you’re going to need to pay it back as per the terms and conditions of the loan. Like any other lender, a mortgage broker isn’t going to approve giving you money if they don’t believe that you’re capable of paying them back as agreed.
To figure out the size of the loan you would be accepted for, make sure to use a mortgage calculator. You can use these to input the price of the mortgage you’re interested in, the interest rate attached, and the loan term in years. You then get a summary of how much you’d have to repay each month. Compare this against your budget to make sure the amount matches or is lower than your budget. Companies like Altrua Financial will also be able to help you with this process.
Saving a Deposit
The next big step towards your new home is to save up a deposit that you can place down. Generally speaking, there is no standard amount that you need to save before you have a deposit, as the amount asked will largely vary according to the overall price of properties you’re looking at.
If a property is expensive, a larger deposit will generally be required. Most people aim to save up 20% of the overall property price. However, you can actually find 90%, 95%, and even 100% mortgages out there, which would mean you wouldn’t have to have a deposit, or you would only have to gather up a 5% or 10% deposit!
Once you’ve sorted out your budget and your deposit, you can start to take a serious look at what’s available to you on the market. Take your time and browse various properties. It won’t be long before you find the home of your dreams and can put in an offer!