5 Things to do Before Buying a Home
Here are 5 essential things to do before you start house hunting, which will make the process of buying a home a whole lot easier:
- Find out your credit score
Your credit score is one of the biggest factors in determining your loan terms, or if you’ll even be approved for a loan. If you have a low score, take the time to repair it before applying for a loan, as this could save you thousands in interest payments over the duration of your mortgage.
- Decide what you want
You can’t start house hunting until you know what you’re looking for. Make a list of all the features you want in your new home and grade them in terms of importance, identifying what is an essential property ‘must have’ and what you would be willing to compromise on. Remember to be realistic, or face being severely disappointed when you begin your search and realise you can’t afford half of the things you listed.
- Know every expense
As we all know, there are a number of expenses that come with buying a home, and they can add up very quickly. Taking the time to find out the different fees and costs you’ll have to pay will mean you won’t be as surprised by the total amount you end up paying. Of course, you won’t know exactly how much you’ll have to pay until you’ve completed the process, but doing your research now will help you to better plan your budget to make room for all the additional costs.
- Decide on your budget
It goes without saying, knowing what you can afford to pay before you start the buying process is essential. If you need help deciding on your budget, you can speak to an Independent Financial Adviser (IFA) or your bank to get expert advice on how much you can afford, and what type of mortgage will best suit your situation.
- Get pre-approved by a lender
Getting approved for a mortgage is probably the most important part of buying a home. Pre-approval means that, as long as nothing changes regarding your financial situation (i.e. you lose your job or declare bankruptcy), you’ll be able to get the loan when you choose the property you want to buy.
Getting pre-approved will also come to your advantage if you have to compete with another buyer for a home you love, since there is a smaller chance of the purchase falling through which will be reassuring to the seller.
Hopefully you have found this article useful. If you have any further questions, feel free to connect with us on our Facebook page!