Buying a new home for yourself or your family can take you through an enormous amount of stress if not done properly. It involves various stages, including planning and the legal aspect – not to mention months of just finding the right place to buy and maybe years of saving up.
Having a good grasp of what really goes on in property buying can absolutely help you, especially when you know that it is one of the biggest money spending decision you will ever make. Understanding this will help you ease out the trouble of home-buying.
1. Find Every Information You Can
Because buying a house is a big investment, it will help if you get all the information you can have – from finding the right property to getting a mortgage, which is your most ideal choice unless you have a huge amount of money tucked away in savings.
Having every detail handy, from property listings to mortgage advice will save you from trouble and unnecessary expenses, especially when you’re on a calculated budget. Search through the Internet and find ideal listings and mortgage lenders. You may also need to make several phone calls every now and then to find out more.
2. Look For The Right Mortgage
A mortgage is a kind of loan where the property you’re buying serves as a collateral. The lender can repossesses it or put it up for reselling should you fail in your repayments.
Unless you’ve got a huge amount of money tucked away in savings, getting a mortgage is your biggest option here. Find individual mortgage brokers or talk to your bank about getting in-depth knowledge on mortgages and how it works.
Getting a mortgage agreement in principle should get you started once you’ve learned all the details. It helps you show your seller that you are serious about buying their property.
3. Put In An Offer
Once you found the house you want to buy, you can put in an offer to its seller, generally through an estate agent.
Your offer depends on how much you can afford and you should also consider a room for negotiation on the seller’s asking price. Also, remind yourself to offer a price that is subject to a survey and the confirmation of your mortgage.
4. Hire A Solicitor/Conveyancer
To take care of the legal aspects and the relevant paperwork, hiring a solicitor or a licensed conveyancer is necessary. It saves you time going through terms and legal statements you barely understand. Conveyancers/solicitors can also look through some planning or local issues that may affect the property’s value.
5. Get A Survey Done
A survey should check the condition of the property and getting it done is important especially when you need to know if there are things that your need to pay out for repairs and maintenance. Should it cost you more, you can negotiate for a lower price or back out of the transaction.
A basic condition report is a cheap option but may not involve a thorough inspection of the property value. You may opt for a homebuyer survey report that includes an exterior and interior inspection of the property. On the other hand, a structural/building survey is ideal when you’re buying an older or an unusual property.
6. Exchange Contracts
When the inspection is completed and you have come up with an agreement with your seller, granted that your mortgage has also been confirmed, you can now sign and exchange contracts.
Exchanging contracts involves an agreement to have a percentage of the selling price paid as deposit. Both the seller and the buyer will be legally obligated to fulfil the terms of the contract.
7. Settle A Few More Things And Get Ready To Move In
You should be ready to move in once you sealed the contract. Before you even begin moving in, note that there will still be a number of things to pay for, including your conveyancer/solicitor’s fees, the stamp duty land tax, and the balance of the property based on your mortgage terms.