*This is a collaborative post.
If you are thinking of buying a house soon, you may be wondering exactly what this involves. If you are selling your current home first, then you may have a bit of an idea. But if this is going to be your first property purchase, you may feel as if it’s a bit of a minefield. There is a lot that goes into buying a home, and it is vital that you can prepare financially. In this post, we’re going to explore how you can do that.
Understand the Process
First of all, you will find that it’s really helpful to understand what the process involves. Buying a home can be a lengthy, stressful process. But it can also go a lot smoother if you are aware of the steps you need to take. From making an offer to getting a mortgage to going through checks and understanding your position in a chain, when you know this, you will find that you are more prepared.
Consider Your Options
When you have a much better idea of what the house purchase process involves, the next thing you need to do here is make sure that you’re considering your options. If you know that you don’t have the best credit, looking into mortgages for adverse credit history is a great solution for you here. If you do have a better credit score, you can probably take a look at the latest mortgage rates from the mainstream lenders.
Get Your Finances in Order
Alongside this, you will also want to get your finances in order so that you’re ready to make a mortgage application. The first part of this will always be understanding what you can afford. Speaking to a mortgage broker or using a mortgage calculator to see what you can borrow is useful. You then also need to make sure that you are getting things like your payslips and bank statements together, ready to apply.
Set Money Aside for Fees
You may know that you need a deposit to put down when you purchase a home, which can be anywhere from 5%-30% plus, depending on the lender, but that’s not the only cost you’ll be dealing with. You may have taxes, such as stamp duty, to pay on the property purchase price, alongside estate agency fees and any solicitor and legal fees too. Understanding how much this is likely to cost is vital so that you can set the money aside and not be caught short.
Prepare for Any Renovation Work
Lastly, you’re then going to want to make sure that you prepare yourself for any renovation work that may be needed. Of course, if you’re buying a brand new home or something that has already been modernised, this may not apply to you. However, if you are buying a fixer-upper, understanding the renovation process and how much it will cost is really useful here. Even if you’re not planning to do anything straight away, ensuring that you are both aware of the costs and able to budget for the work you need can be useful.
The last time I bought a house was in 1999! I can still remember how stressful it was in a chain!