Wednesday, October 24, 2018

Are You Ready To Buy Your First Home?

Getting the keys to your first home is a moment filled with excitement and pride. However,
rushing to purchase a property before you are ready can be a big mistake. The last thing you
want to do is end up resenting your new purchase because you are struggling to get by or
because it has worked out to be the wrong decision. With that being said, this blog post has
been put together to help you figure out whether you are ready or not to buy your first home.




Securing a mortgage


Will you be accepted for a mortgage? One of the main reasons why people end up being
refused a mortgage is because the lender does not believe they will be able to meet the
repayments. This is the best mortgage calculator for figuring out whether or not you will be able
to afford a mortgage. If a lender thinks you cannot, this is usually because their income is too
low and, therefore, they don’t see how the individual will be able to manage it. One way to
tackle this is to get a guarantor mortgage. This is when somebody close to you, such as a
parent, pledges that they will pay the mortgage repayments should you falter. They will need to
show the lender that they can afford the repayments.


You may be able to afford the mortgage repayments, however, you may be struggling to find the
funds to pay the deposit. When you purchase a property you need to pay a percentage of the
house asking price upfront so that you are able to get the mortgage. For example, if you are
buying a house at the price of $200,000 then you may be asked to pay $20,000 as 10 per cent
is the usual rate required. Nevertheless, accumulating these funds upfront can be tricky. You
will need to set up a savings plan. Identify your goal and put all your excess funds into a
savings account – no matter how big or small they may be. It will all add up in the end.
Alternatively and additionally, you can also seek government aid. First-time buyers have the
possibility of government assistance and therefore may be given help towards their deposit
(you won’t be given the full amount).


In addition to this, if you have a poor credit rating then a lot of lenders will be reluctant to lend to
you. If you have defaulted on payments before then the lender will not have the confidence that
you will meet the repayments this time around. Furthermore, people can have a bad credit score simply because they have never borrowed in the past. If you do have the income to cover
the repayments then you should be ok. However, lenders are sceptical because they can’t
deduce whether you are reliable because they have nothing to refer to. You will need to try and
improve your rating. One way of doing this is being on the electoral register. Also, make a plan
to repay each credit card one step at a time. It is good to deal with the smallest repayment first,
then work towards the next, and so on and so forth.


Finding a good estate agent


Estate agents seemed to have gained an unfairly negative reputation. A proportion of people
have developed a sense that they do not need to use an estate agent. They think they can cut out ‘the middle man’ and go directly to the seller or the person renting out their property and
make the agreement that way. However, this is a rather naïve view to take, especially if you are
someone with no background in the world of law or housing. If you are ready to buy your first
house, you will have a quality estate agent by your side to assist you. Let’s take a look at the
benefits of using such a professional service in further detail...


Better selection of properties
If you go to an estate agent then you will have access to a much better selection of properties.
An estate agent will usually have a wealth of houses and flats on their database – a lot more
than what you see in their window displays! However, it will be very difficult for you to get
access to as many great properties yourself. The majority of people selling their houses will do
so through an estate agency and they will honour their contract with the company. Therefore, if
people approach them to sell their house then they tell them to go through the estate agency.
Plus, how are you going to find these properties? If you have a look at them on the internet you
won’t get contact details for the homeowners, you will get the contact details for the estate
agency. The only way is if you physically saw a property on the street with a ‘for sale’ sign on it
and went and knocked on the door.


Legitimate sale
If you go through an estate agency then you can be certain that the sale is a legitimate one.
The contract will have been developed in order to suit both parties. You can be safe in the
knowledge that this company has been dealing with the selling and buying of houses for years.
Everything that is done will be in accordance with the law. There are a lot of components that
go into the buying and selling of a property. It is not as simple as just handing over the keys.
There is a lot of paperwork that needs to be complete. If you and the seller of the house were to
conduct this yourself how are you to know that you have done everything properly? Who is
going to oversee the sale?


Expert advice
Last but not least, when using an estate agent you will have the help of experienced
professionals. They will know everything there is to know about the area. Do you want to know
about the local schools in the area? Just ask them. Do you want to know about the gas provider
for a certain location? Ask them. If you are worried or have any concerns about the buying
process then they will be able to put your mind at ease. They can tell you what you will be
able to realistically get for the amount of money you have available. Their help proves to be
essential.

So there you have it: hopefully, you now have a better understanding as to whether you are
ready to purchase your first home or not. There is a lot to consider when putting your foot on
the property ladder, and so it is important that this is not a process you rush into before you are
ready. After all, the worst thing you can do is buy a home just for the sake of it. It is not a
decision that can easily be reversed. If you are to move forward with this step, you are going to
need to have a quality estate agent on your side and you need to ensure that you will be
approved for a mortgage too.

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