Buying a House: A Step by Step Guide
So you’re interested in buying a house? Maybe you’ve finally saved enough for your first home, want a change of scenery, or just want to make more investments in property. No matter how many times you have been on the hunt for a property of your own, the whole process can still be somewhat daunting.
Can I afford to buy a property?
The first step to buying a house is saving enough money so that you can put down at least a 10% deposit. If you have more, that is great, but 10% is usually the minimum deposit that you can put down. The amount of money you have for a deposit is also one of the factors determining how much you can borrow for your mortgage. You should keep this in mind when you are looking at the price range of the kind of property you want to buy.
It is also important not to forget about all of the hidden costs that come with buying your own home. You need to budget for stamp duty, conveyancing, surveys, valuation fees, mortgage arrangement and broker fees, along with any other costs that may appear in the buying and moving process. There are some fees, like stamp duty, that some first time buyers are exempt from, but you should always ensure that you have enough savings to cover both the deposit of your house and all the other costs surrounding it.
You also need to be sure that you can make the mortgage repayments every month. You should not get a mortgage on a house if you think you will struggle to pay it every month. If you currently, or have in the past rented a property, you will be able to make a judgement on how much you can realistically afford to pay every month. It is not advised to have to spend more than 35% of your monthly wage on your mortgage.
How to know what house to buy?
When you know that you have enough money to buy a house, it is then time to decide what property you want to purchase.
Before you start looking for properties, you need to set your budget. Once you have decided upon your maximum budget, you can begin to narrow down your search to include specific features that you want your new home to have: Do you want an apartment, house, or maybe a bungalow? How many bedrooms do you need? Would you prefer to have more than one bathroom? Answering specific questions like these will help you to narrow down your search to properties that will suit you.
You also need to identify priorities about the area in which you want to buy your house: Do you want to be near family and friends? Have easy access to public transport? Be in an area with low crime? Are you able to get to work in a reasonable amount of time?
Every question that you answer will help narrow down the search for your perfect house. You may need to be flexible on a few things, but as long as you know what you can sacrifice and what are your priorities, you will find the right property for you.
Making an offer on your perfect property
When you have taken the time to patiently search for your ideal property and have finally found the one you want to go for, it is time to make an offer. This is a big step and one you need to be fully prepared for.
Make sure that you have all your documentation ready. You need your identification, proof of your funds, proof of your mortgage agreement and enough money for your deposit. It is also worth researching the value of other houses in the area of similar size and type so that you have an informed idea of the price that you are willing to pay for the property.
Once you have everything ready and you have a price in mind, you should contact your estate agent to tell them that you wish to make an offer. Then comes the nerve-racking bit; Waiting to see if the seller has accepted or rejected your offer. If the offer is rejected, it’s time for more negotiations, or to move on and look for a different house. If the offer is accepted, it’s time to celebrate and exchange contracts!
MORE HOME Buying BLOG POSTS
Hopefully, before you know it, you will be moving into your new home and searching for ways in which you can save money on some home renovations!