Buying property is a very important step in people’s lives and it is essential that people take the matter seriously. Here are 7 things to consider when buying property.
No one can see in the future or accurately predict what will happen but you do need to make plans and provisions for what you want to achieve in life. If you have good career prospects in a steady company, you are likely to be confident about what the future offers. If you are uncertain about your work opportunities or the stability of your life, do you want to commit to a mortgage and such an important undertaking?
Buying a home is the biggest commitment a person will make in life. It is impossible to foresee everything that can impact on your life but you do need to be confident that buying property is the right step for your life.
You need to be sure of what you can afford to buy before you start thinking about property. There are many costs associated with buying property (like solicitor fees, valuations, surveys, removal costs) and there are costs like home insurance, furniture and property related bills that you need to pay each month.
Buying a house is expensive at the time and it provides you with significant bills for the duration of the mortgage, and beyond if you stay on if you remain in the property after the mortgage has been cleared.
Arrange an appointment with a financial advisor and make sure you have created your budget. This provides you with the basis of what you can and cannot afford to buy.
No one knows what is going to happen with the economy but there has been talk that interest rates will rise in the near future. You have to ensure that you have the financial flexibility to withstand rising costs or additional fees.
Too many people find themselves with very little leeway when it comes to their mortgage finances and then if the market changes; they find themselves in an untenable position. Talking with a market expert or financial advisor will give you more insight into how you can prepare for fluctuations in the marketplace.
When looking for the best mortgage, it makes sense to improve your credit score. The better your credit score, the more likely it will be that your mortgage application will be accepted. Taking steps like ensuring you are on the electoral roll at your current property, paying off credit cards and not applying for credit in the lead-up to applying for a mortgage will all positively impact on your credit score and ultimately your ability to obtain a mortgage.
If you have received a mortgage offer in principle, you will have a rough guide on what value of property you can look at. This is an important and relevant starting point. Within this ballpark figure, you need to know what sort of home you are looking. Do you need a certain number of bedrooms? Is a garden right for you? Do you need a home that has to be perfect from the minute you move in or are you looking for a project?
There are many different property types to choose from and once you have a rough outline of the finances you have access to, you’ll find it easier to narrow down your options for the ideal home.
Some people will have a specific area in mind for a property. This may be close to family or their work. If you have more flexibility, you need to research what other areas have to offer. It may be that local transport is important to you or you may want leisure or entertainment options close at hand. You need to consider what you want from a local community and you then need to find the areas that meet your needs.
This is something that many people overlook or don’t think about. Being a property owner is a major responsibility and just because it is viewed as the natural progression for people doesn’t mean that it is an option that is right for everyone. Are you the sort of person who is happy to deal with leaks, boiler breakdowns and all of the other responsibilities that are left to the property owner? If you’re not, owning property may not be right for you at this point in time.
Owning a home is a major step in people’s lives but you need to approach it property. Hopefully this guide has allowed you to be more confident about the property buying process.