Buying property is a dream for most people – it’s probably the biggest financial decision the average person makes in their lifetime, simply because it involves a large sum of money and involves a long-term commitment. That dream house can bring much pleasure, pleasure for a lifetime, but if you haven’t though it through carefully, it can lead to a lot of regrets. So how do we make sure we make the right decision? What’s the right process and what are the things to consider?
Do you really want a home?
It’s a misconception that owning a home is for everyone, and that everyone wants to own a house or property. If you have plans of moving abroad for a long period of time or are not the type of person who takes pride in property and don’t care so much for investing time and money in maintenance and improvement, owning a home might not be for you. It’s a serious question: do you really want one?
Decide on your budget first
This requires complete honesty on your part: how much can you honestly afford to pay off at the end of the month? Are you sure you are not at risk of losing your job, and what are your prospects of a promotion? Be safe when deciding this: calculate conservatively and calculate your budget accordingly.
Arrange your finances
The bank will want to know you can pay the mortgage, so they will investigate your credit rating. This doesn’t mean you’re not supposed to have debts; it means you have a good record of paying them. Settle your debts before applying for mortgages.
Consider the house as property first
When shopping around, see the house as an investment that you would want to sell again later rather than a nest to build a home in. This way you are sure you get value for your money and will be able to resell if or when things go wrong.
Gather the deposit
Start saving as soon as possible; the more deposit you can pay, the easier for you in the long run.
These are not the only steps to take – they’re just the beginning. Next comes making the arrangements for the mortgage (you’ll want to find a good deal), and once you’ve actually gotten an application approved, there are still ways in which you can make gains and avoid losses: don’t just immediately agree with the asking price of a home; make an offer instead. Consider also the other costs you may not be aware of: taxes, duty stamps, surveyors, and so on. Buying that perfect home can be an exciting process, but be smart about it. Take your time and follow a process, and seek mortgage advice from specialists like Flagstone.co.uk.
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