Buying a home is a very scary and grown up thing. Having a mortgage is a big step for the young millennials which are now beginning to step onto the property market. The decisions you have to make throughout the process can be extremely important and the decisions you make could either save you money or cost you money. Here are some of the key steps in buying a house and some advice on the decisions you will have to make.
1. Deciding if its the right time
The statistic for people wanting to own their own home in the UK is 86%. That doesn’t necessarily mean that this 86% should go ahead an buy a property. There are various reasons that it may not be the right time for you to buy. This may be because you don’t have the money and taking out an unrealistic loan isn’t always the best decision. It may also be that the property market is unstable and this results in tough market prices.
There are also smaller considerations to buying a house. They are a huge financial commitment and what many people don’t realise is all the repairs must come out of your own pocket. If you buy a flat in a tenement and the roof comes in, you will have to pay part of that repair, same as if the elevator in a big block needs repaired. When you are renting these are things you don’t need to think about.
2. Decide on a budget
After you have made the decision to buy you must then realistically think of how much you can afford. This will largely be impacted by how much you can pull together for your deposit. It is wise not to forget the hidden costs that come with buying a home also. You will need to think of lawyer fees, valuation fees, stamp duty and the list goes on. All these additional costs can add a further 15% on to the buying price so you should be aware of that and budget for it.
3. Arrange your finances
The first and most important stage is pulling your deposit together. This could include your savings, borrowing from your parents and perhaps any money from your current home if you are selling this. Then you will need to decide on what kind of mortgage you are going to get. Deciding on a mortgage involves a few considerations like the type, getting a mortgage broker and the value of mortgage you will get.
4. Finding an area to live
Once you have worked out the financial feasibility you will then need to think about the area you would like to buy in. This will largely be impacted by the finances you have in place as if you want to live in affluent areas you will need considerable finances available. You need to ensure that you research areas fully and it would be advised that you spend some time in that area and get to know it. Once you buy a house there you will be stuck, if you dislike it you will be unhappy and want to move, facing more costs.
After this you will have further stages to consider including finding your dream property and making offers. No matter how stressful you find the process, it will all be worth it in the end!