If you are going to be purchasing property, then you need to know a few things before you get started. It’s not just an easy, straight forward process, and there are plenty of times where it’s going to cause you more stress than anything else, but that doesn’t mean that it’s not worth it. The reason that we are warning you of this right now is because we don’t want you to be blindsided when things don’t go to plan. In this article, we’re going to be taking a look at some of the things that you are going to need to know before you get into the property purchasing process. If you would like to know more, keep reading.
You Don’t Need The Full Amount
The first thing that you need to know is that you do not need the full amount of money that a property costs in able to be able to purchase it. In fact, it depends how much of a deposit you have, and how much a bank or lender is willing to lend you while you pay it off. Most places expect you to have around 10-20% minimum for the cost of the home, and then you may be able to get a mortgage for the rest, but this entirely depends on your credit and other factors.
Or, if you will have the full amount after you have sold the home that you have, but you don’t have it right now, you can look into secured bridging loans as they may be a good choice for you. Before you sign anything though, you need to ensure that you have read all of the terms and conditions, as well as the fine print. You don’t want anything unexpected to come your way, so you’ve got to be careful here.
Know The Hidden Costs
There are too many people out there that think the only cost associated with purchasing a home is going to be the cost of the property itself. This is not true in the slightest as there are many others costs that you are going to need to pay for. For example, you are going to have to pay quite a hefty amount in solicitors fees as they are going to be quite involved in this process. If you are using a real estate agent to ensure that your needs are being met, then these are going to be an additional cost.
Then you are going to need to take into account any other fees that you need to pay. This is going to include closing fees, any inspections that you need done on the house, and any repairs that are going to need to be made. It’s not just about purchasing the home, it’s about the services you need and what comes after that you have got to think about as well.
Ensure You Have A Survey Completed
Before you purchase a home, it is essential that you have a surveyor come out to check the property. If you skip this step, then you have nobody to blame if you end up with a home that is not at all what you thought it was. When you put an offer in on a property, you generally put this in under the condition that the survey comes back clear, or with minor changes that you are willing to accept responsibility for. If the survey comes back with hidden issues, then some buyers will ask the sellers to either drop the price on account of this, or to fix the issues before the purchase can go through.
A survey will pick up any problems that the home has so that you are not blindsided if you move in and things start to fall apart. Surveyors are trained to look for things that regular people may miss such as asbestos, hidden mold, problems with the foundations and so much more. It’s always better to be safe rather than sorry and wait for a survey to be completed.
It Does Take Quite A While
The house buying process does take quite a long time. It’s not like it looks in the movies where you put an offer in on a house, it’s accepted that minute and then you own the house from thereon in. There are credit checks that need to be run, there are pieces of paperwork that need to be signed, and there are lots of legal things that need to be completed. All in all it takes on average between 1-5 months to purchase a house, depending on all of the contributing factors.
Go Through A Mortgage Broker
If you are going to be getting a mortgage, then we highly recommend that you go through a mortgage broker. They have access to some of the best deals on the market, which means that you don’t have to worry about anything. The mortgage broker will take all of your information, and they will try to find you the absolute best rate that they can get for you. These professionals know what they are doing, and it’s worth trusting them with this as we can all but guarantee they are going to be able to find you something better than what you would be able to find yourself.
Getting a mortgage is tough and it’s complex, so letting a broker take care of this for you takes a large weight off of your shoulders.
Purchasing a property is one of the best financial choices that most people will ever make. However, it’s not all sunshine and roses going through the process as it can be a lot of stress if things don’t go smoothly. It can be quite stressful, and it can feel as though it’s never going to end, but we promise you that it will come to an end eventually and you will get the house that you are purchasing. You’ve just got to make sure that you are willing to take the time to get through this process properly, or else you could find yourself having problems later down the line.
*Contributed by Sam Jones. Header Image Location - CC0 License
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