The real estate market is quite unforgiving, and you need to know the ins and outs if you are going to buy some property on your own. Moreover, a home is not like ordinary property, it is the most crucial place in your life, and buying one is a challenging and essential decision.
Everyone wants to buy the perfect home, but that is easier said than done. Therefore, to help you out, I have prepared a small but comprehensive guide on navigating the real estate market and getting a perfect home for your requirements. In today’s post, I will mention some questions that you need to ask yourself before settling on a home, so keep reading to learn more.
Should I buy or rent?
When it comes to selecting accommodation, the first question you need to ask yourself is whether you should buy or rent. There are pros and cons to both, but in some situations, renting might be a better option.
For instance, if you are renting, you won’t have to come up with the initial deposit on the mortgage of your home; secondly, you will have the freedom of moving whenever you want, and you won’t be tied down. However, you won’t be able to make any changes to a rented property without the landlord’s approval.
On the other hand, if you buy a home, you will have to pay a hefty down payment, but your monthly payment is going towards a property that you will eventually own. Furthermore, you have the freedom to make any changes you like. If you are planning on building your dream home on a piece of land make sure to get an ALTA, NSPS survey to remove any risks associated with encroachments and boundary line disputes.
What is my budget?
Once you have decided that buying is the option for you, you need to figure out your financial situation. For a rough estimate, you can expect to get a mortgage four times the amount of your gross income.
When you go to consult a mortgage adviser, make sure to take all your financial credentials with you. When you have an idea of how much you can afford to spend on your home, you can make a lot of other decisions more easily, like what kind of home you want and where you want it to be.
What about the initial deposit?
A good credit score will allow you to get a better mortgage; however, you will need to come up with the initial deposit on your home, which is a difficult ask for many people. Ideally, you should start saving for the deposit early.
Depending on your credit score, and several other factors, you may have to pay a deposit of around 5-20 percent of the total value of the home, which can be a lot of money. Therefore, start putting your money into a savings account.
How to find the perfect home?
Now that you have figured out your finances, the next step is to find the perfect home. The first place to look is online. These days, there are many amazing online websites like Zoopla and Rightmove, which can help you find your dream home.
Whether you are looking for some cheap properties in Spain, or something a little more lavish, these websites can be a lifesaver,
The tag-based searches allow you to instantly search for a specific subgroup of properties so that you can find the home of your dreams in a flash. However, if you are indecisive, it could take longer as well.
What about the viewing of the home?
Once you have selected some possible candidates for your home online, you need to visit them physically. No matter how many photos and how long a description the online advert has, physically visiting your home before you make such a hefty investment is essential.
When you visit the home, you need to keep some things in mind. Only the home’s positives are going to be highlighted on the online listing; therefore, take someone with you who can look at the home and figure out if there are any flaws or problems.
You should also prepare a list of questions for the seller; you should ask them about recent repairs, and ask them about some of the problems they had to face while living in that home.
How to make an offer?
Now that the finances are done, you have got your mortgage in principle, which is an estimate of how much mortgage you can get, it is time to make an offer to the mortgage broker. If the home you choose is in the range of your mortgage in principle, you won’t have any problems, and your mortgage will get approved most of the time.
However, if it doesn’t, you may need to reassess your finances. Once everything is settled, you can sign the mortgage contract and start your journey towards owning a home.
How to finalize the contracts?
Now that the lender has approved your mortgage and the seller is ready to hand over the deeds, all that is left is to sign the contracts. These contracts are usually quite straightforward, but you should still have your realtor look at it to ensure that once you and the seller are satisfied with the deal, the contracts are signed, and you are good to go. This is the time when you have to pay the initial deposit on your home as well.
What about home insurance?
Once the sale is made and you have the ownership of the home, the lender will urge you to get a home insurance policy. This is the right move; after all, a home is quite a hefty investment, and you need to have some assurance for peace of mind.
A good home insurance plan will keep you financially safe in case of any disaster or accidental damages. Keep in mind that getting insurance is not a legal requirement for owning a home, and you don’t have to get it through your lender either. Still, it is undoubtedly the safe move since no one knows what will happen the next second or tomorrow, so it is always better to be prepared.