Purchasing a home is an incredibly exciting time in your life and the start of a new chapter. Getting your foot on the property ladder is a major life accomplishment and one that should be cherished. But the home buying process can also be incredibly stressful and arduous, particularly when it is your first time. It is an enormous amount of money and a huge responsibility, which is why it is helpful to be aware of a few tips that will hopefully help to reduce stress while helping you to find the perfect home. So, keep reading for a few tips that should help.
Save As Large A Deposit As Possible
First, you need to put down as large a deposit as you possibly can. It might seem obvious, but this can make an enormous difference and impact your future finances through how much you end up repaying and for how long. This is why you should scrimp, save, sell and do all that you can to raise as much as you can to put down – 10% is the standard, but aim for higher if you can.
Improve Your Credit Rating
While you are saving for a deposit, you should also use this time to improve your credit rating. This is a major factor that lenders will look at as it determines whether or not you are a responsible borrower. There are lots of ways that you can improve your credit rating, such as:
- Getting on the electoral roll
- Paying off debts
- Paying bills on time
- Using credit little and often
- Closing unused accounts
- Checking your report for inaccuracies and fraudulent activity
Be Aware Of Related Costs
It is important to put down as large a deposit as possible, but keep in mind that there are various costs that you will need to cover that can add up to a significant amount. Stamp duty, surveys, conveyancing fees and estate agent fees are just a few of the costs that you will need to cover and can come as a nasty surprise if you are not prepared.
Get An Agreement In Principle
Before you start house hunting, it is important to have an “agreement in principle” from your lender outlining how much they are prepared to lend you. This can give you an edge while house hunting as sellers will know that you are serious and will have the required funds available. You don’t want to view a house and fall in love only to miss out because someone else had an agreement in principle and you did not, so this is an important step to take.
Know Your Requirements
You should also consider what your requirements are for a home before you start looking. You may have requirements such as a certain number of bedrooms, being within a certain radius and having a garden. These are the things that you need from the home and everything else you should have some flexibility with. Additionally, try to see the potential of a home instead of what it looks like now – viewing a floor plan can be a great way to do this.
Consider The Neighborhood
It is not just the property itself as you must also consider the neighborhood and local area. You will find it helpful to speak to neighbors, visit at different times during the day and to research things like crime rates and development projects online. The neighborhood can have a huge impact on your happiness and wellbeing, so this needs to be an important factor in your decision.
Instruct The Services Of A Conveyancer
Once you have found a home and put an offer in, you will need to instruct the services of a conveyancer to get the process underway as this can take around 12 weeks to complete. Essentially, this is the process of legally transferring the ownership of the property from one person to another and can be complex. You can find a guide to conveyancing online that will tell you all that you need to know and what to expect from the process.
These tips should come in handy for anyone looking to buy a home. This is a hugely exciting time in your life, but it can also be stressful, complex and frustrating. Preparation is the key to success and the advice in this post should help you to get yourself in a strong position, find what you are looking for and reduce stress throughout the entire process.