A big decision such as purchasing your first property can be one of your most important.
Fear not! We’ve broken it down into 10 simple steps so you can buy your first house with confidence.
Step 1: Is it better to buy or rent?
Buying and renting have advantages and disadvantages. Some might find renting better than purchasing.
When you rent, you won’t have the deposit up-front. It’s also flexible to move around, but you don’t own the home so you have to keep the landlord in the loop for anything you want to change.
With a mortgage, you will be able to change the house to your liking. Additionally, your monthly payments will directly contribute to owning the building.
The problem is that it is difficult to gather up the initial deposit for a mortgage, and it is not as easy to up sticks and move.
Step 2 Can I afford to buy this?
You ought to visit a mortgage advisor before you start looking. They’ll be able to give you a pretty good idea of what you are able to afford.
Bring these things with you when you see them:
• A driver’s license or passport as identification
• Proof of your current address: council tax bill, utility bill
• Payslips from the last three months.
•Your latest P60 form.
Credit card statements, Mortgage loan statements, and statements relating to overdrafts.
As a rough estimate, you could borrow up to four times your gross income.
Several factors influence your monthly payments, including the initial deposit, the length of time you have the mortgage for, and the interest rate.
Many options are available to assist in making mortgages more affordable.
Step 3: Saving a deposit for the future
Typical deposit amounts are between 5% – 20%. It’s a lot of money, especially if you’re renting.
Saving money with a strict budget is important for that all-important deposit. To start, you should determine your monthly expenses, including one-off repairs such as MOTs.
Once you have determined how much you can realistically afford to save, you can start setting money aside.
You ought to put your savings into a simple savings account since that will work, and you may also receive interest payments.
The ISA is another good way to save if you don’t want to spend your money out of sight.
Step 4: Searching for the perfect home
It is easy to locate houses online at Bin Saeed Estate & Builders.
It is also a good idea to consider the surrounding area. Would you like a place with lively nightlife? How is the commute to work? What is the local school like?
Once you have figured this out, you can begin browsing.
The following characteristics should be noted in the description of the house:
• Floor plans
• The age of the house
• Storage space
• Energy efficiency rating
• Double glazing
• Council tax.
With the estimate, you’ll gain a sense of how much space is available and how much it will cost to maintain.
Step 5: Get a mortgage – agreement in principle
A mortgage agreement in principle may be a good place to start before you start looking at houses in person. Consider this your mortgage estimate. Taking a mortgage calculator will help you determine the amount of money you can afford to borrow, as well as how much you’ll need to pay each month.
Your advisor will take a look at two different mortgage types: repayment and interest-only.
Repayment mortgages have nothing to do with the mortgage itself. Interest-only mortgages are self-explanatory – you limit the mortgage to the amount of interest you pay, but you have to pay the full cost of the home at the end of the term.
Step 6: The viewing took place
Let’s get to the viewing! Here are a few tips to keep in mind:
• Bring someone along with you
• Take pictures of everything
• Be on time
•Check the walls for cracks.
•Look for any dampness using your nose.
- Be prepared to ask seller questions.
Step 7: Offer them an offer they can’t refuse
The next part is where you agree on the mortgage terms with your lender to finally pay for the house.
First, contact the estate agent to make an offer. If he accepts, you’re set. However, don’t move forward too quickly.
You may have to reevaluate your finances if they do not accept the offer.
Your mortgage should also be secured in principle, but to complete your application you need:
• Your passport or a driver’s license is acceptable proof of identification.
• A copy of your current address, eg council tax or utility bill
• Payslips for the past three months
• Your most recent P60
• Any credit obligations (credit card statements, student loans, overdrafts, etc.) you have.
Upon acceptance, you will receive a written contract entitled “Subject to survey and contract”.
Step 8: Surveying and conveyancing
When you have submitted your mortgage application, you should double-check all of your information.
The term conveyancing, which entails transferring ownership of the property from one individual to another, means nothing more than that.
Conveyancing typically involves:
•Acting as your middle man between yourself, the lender, and the seller
• Being aware of any contracts that pass between you
• Working with the Land Registry
•Getting stamp duty sorted out
•Transferring funds during a sale
•Monitoring for structural issues such as subsidence.
An experienced lawyer who specializes in conveyancing could speed up the process for you.
Lenders perform surveys on houses to ensure they are sound investments. A survey of the house will identify structural problems.
It’s wise to engage professionals to survey the house for you too. You can conclude for yourself that it’s structurally sound.
The following type of survey exists:
• Only valuation
• Homebuyers report
- Building survey.
Step 9: contracts exchanging and insuring the house
After the lender approves the mortgage, the surveyor approves the offer, and the seller hand over the deeds.
There is only contract signing left. Here is how it goes:
- You sign a contract stating that you have legal ownership of the house.
- The seller signs a copy. The seller gives it to their solicitor
- Each person’s solicitor swaps contracts.
- The buyer and seller sign each other’s contracts.
Here’s where you’ll pay your deposit, too.
You may be required to purchase insurance for your home by your lender. After all, this is a big investment on their part.
While insurance is not a legal requirement, it will provide you peace of mind against situations such as flooding, theft, and damage. Remember that you do not have to buy insurance through your lender – it pays to shop around.
Although It’s not a legal requirement, it will provide you with peace of mind against issues like flooding, theft or damage. Remember you don’t have to get insurance through your lender – it pays to shop around.
Step 10: Taking the big step
Have you been waiting for this moment? If so, it’s time to move into your new home! Here’s how to do it smoothly.
And that’s all there is to it. For any other info or query please visit www.BinSaeedEstate.com or Email us: [email protected]