Buying a home is one of the most exciting experiences you will have. For most of us, it works out to be the most expensive thing we have ever bought and so it’s not surprising how much pent up excitement, fear, trepidation we can feel all at once. What if I make a mistake? How do I know when to buy? When is the best time to buy?
With the right system and the help of a trusted mortgage broker and sales agent you can make the most informed decisions. This ultimate guide breaks down the step by step process of buying a home so you can start with more confidence and be prepared. This guide walks you through developing your budget, to selecting a property and signing your contract with useful tips and please note you can reach out to me with any of your questions and I’ll be glad to help.
Are you ready?
Check your ratings on all the credit reports and make sure you have good credit standing before you even start. If you don’t have a credit card now is the time to get one so you can demonstrate you can manage credit as very few lenders will be comfortable to lend to someone who hasn’t handled any credit at all. They like to see your history and be certain that you’re credit worthy and mortgage worthy.
1. Why do you want to buy a home?
Consider why you want to buy this property? Are you done paying rent to someone else and just want to have your own place, your own home? Is where you are no longer suitable in terms of size or location or function? Is it too old and you don’t look forward to coming home? Or is it a more financial decision and you want to secure the property for your retirement? Do you want to buy an investment property? Figuring out the WHY will help guide you make important and well thought out decisions down the road and will also help you narrow down your home search, filtering out the homes that don’t match your criteria.
. Questions to ask yourself:
- What do you want and need from your home?
- What neighbourhood do you want to buy in? How many bedrooms do you need?
- What are you will to compromise on? Location, size of the property, condition of house or the purchase price.
2. What are your GOALs:
it’s critical to set goals once you have nailed down your reasons for proceeding.
Financial goals (Budget)- how much can you afford? There’s no point picking a number from the sky without consulting with an expert to let you know exactly what you can actually afford given your current financial circumstance. Sitting down with an independent/all of market mortgage broker is the best way to define your realistic budget for your purchase and letting you know your options and what products match your criteria. Once you know your budget then you can arrow down your location and size of property.
Questions to ask your broker:
How long is the mortgage for, what’s the annual rate and product fee? Whats the initial lock in period and is there an early repayment charge for changing the mortgage or selling during the fixed period? What does the rate revert to afterwards, Is the mortgage capital and interest repayment or interest only?
Type of property is also important – do you want a new build or Victorian conversion? Or purpose built with concierge desk. Do you want to do your own refurbishment and tailor make the property to your taste?
Setting a time limits to achieve your goals is always a good idea to give you a strong sense of the timelines to achieve this purchase by and work towards this.
3.Tools to use to Help You Find Your Home
Once you’ve defined your goals and criteria you have set for the property, its time for the serach. Online tools are the best place to start your research: 1) Online Portals 2) High street agent 3) auctions 4) news papers home section 5) Word of mouth
Find a Home Using Rightmove, Onthemarket and Zoopla Interactive Map Search to start with.
We know that location plays an important role in the home buying process. Use the map search available on their website to view homes located in or near the areas you have narrowed down your search.
Research the Neighbourhood and contact local estate agents in the area to discuss current local market trends, how easy is it to sell in the area, how many enquiries do they have, what the transport links are like and lots of other questions to get a good sense of the area.
Check Upmystreet.com and get informed about your proposed neighbourhood, check out local schools and you can find out more about the demographic of the residents, types of properties, crime rate and access to amenities transport, school ratings and more.
For more information, fill out my contact us form and book a complimetary session to discuss.
