04 Feb Top Tips For First Time Buyers
The step by step process of buying a home
Buying your first home is exciting but many people are wary of the process. This step by step guide of buying a home will help you understand the process and show you that it isn’t too difficult a task.
Research as much as you can
If you decide that you would like to buy a home, it makes sense to do as much research on the process as possible. This may be researching homes, areas, mortgage types and offers and anything which will leave you more informed about buying and owning a house.
Know your budget
The most crucial aspect of buying a home is the funding, so you want to make sure that your finances are in good order. There are many aspects to bear in mind when looking to buy a home. The larger the deposit you have in place, the smaller the mortgage you need, and the more likely you will be to receive a mortgage offer.
The stronger your finances are and the better your credit rating is, the more likely you will be to receive a mortgage offer or to receive an attractive mortgage offer. There are many costs associated with buying a home and then owning the home, so it makes sense to improve your finances as best as you can.
Once you know what sort of money you have at your disposal and what sort of budget you are likely to have to buy a home, you can tailor your search in a more effective manner.
Seek mortgage advice and try to get pre-qualified for a mortgage
The best way to know how much of a mortgage you will receive is to go through the pre-qualifying process. You do this by providing the mortgage broker with financial information and they will study this information and provide you with a guideline on how much they would be willing to lend you. This provides you with a guideline on the cost of homes you can seriously look at.
It isn’t a guarantee that you will receive this level of mortgage but it is a good starting point. Having this pre-qualified offer also shows that you are serious about buying a home, which can give the selling party more confidence in your intentions.
Choose the right estate agent
When you are buying a home for the first time you need as much as help and assistance as you can and the right estate agent makes a massive difference in the buying process. Research and review different estate agents and find one that is experienced has negotiating skills and who has a good level of local knowledge about the area you want to buy in.
Look for relevant homes and make a decision
Once you have an estate agent, the next step is to look at relevant homes. There are many factors to consider when looking for a property and a good estate agent will offer advice and guidance on whether a home is suitable for your needs. You also want to consider homes in the area and the outside of the home when determining if the home is right for you.
If you find a property you like, advise your estate agent to place a bid for the property.
Have the home inspected
An offer to buy a home will usually be dependent on an inspection of the property, which reviews the structural status of the property and whether anything needs fixed. This is something the estate agent can arrange for you and as soon as your offer is accepted, this should be arranged. If anything of note is found in the survey, there will usually be a chance to withdraw your offer or enter into negotiations over a discount on the property.
Obtain the mortgage
While you should have considered mortgage options and obtained a rough guide of what you will receive, you now need to officially get the mortgage. Once this is in place, you will be very close to buying your home, as the financial aspect is often the biggest factor.
Arrange an appraisal of the home
A third party firm, not associated with yourself or the lender, will appraise the home and ensure that a fair price is being paid for the property.
Arrange the paperwork
Given the importance of buying a home, there is a lot of paperwork to sign off and agree on. Your estate agent will assist you in concluding this matter.
Conclude the sale
Once all of the paperwork has been signed off and agreed, your legal representative should pass on the money and then take care of the remaining matters.
Buying your first home is an exciting and daunting prospect but by taking the process in a step-by-step basis, it should be straightforward.