Robinsons Guide For First Time Buyers: Finances
It is hard getting onto the property ladder for the first time, especially if you are single or if you do not have any financial help from family or friends.
Experts predict a young nation who only rent homes but with this help guide from Robinsons International, first time buyers can know all the information they need about house buying from the initial stages of getting a loan to searching for a new home.
– Getting a mortgage
Actually being accepted for a mortgage and finding the right loan is far more difficult than home-hunting. Looking for a house is far more interesting but without the finances in place firstly, it is pointless. One needs to know how much they can afford beforehand so you can look at house prices you can afford to put an offer on.
A tip is to thoroughly work out your monies so you know how much you can realistically afford to borrow, so all the bills and mortgage are paid per month without struggling to make ends meet.
The general consensus lenders apply is up to x3 your salary but ensure that your credit history is boosted ahead of requesting, so they cannot give you an excuse to decline lending.
Try to save as much as you can for a deposit so you don’t have to borrow as much money and therefore pay high interest rates.
– Putting in a home offer
When you see a property that you like, before jumping in straight away and put in the asking price consider negotiating and making an offer under par. Don’t expect the seller to accept it immediately but prepare to bounce back with counter offers.
It can be tricky as you don’t want to put the seller off completely but this is business and every man is for himself. If your offer is too low the seller may become offended and dismissive but if the offer is too high you may alienate yourself to making a profit.
Helpful tips to determine what amount of offer you should put in are based on the facts figures of the house. Find out how long the property has been on the market and why the owners are selling, as it will imply how desperate they are to shift it; and learn if any other offers have been made and if they were, what price were they had and why were they not accepted.
Finding out such info may give you some leverage in the negotiation process.
– Extras, extras, extras
When you buy a house you need to be aware you will spend money not just for the house. Extras such as solicitors’ fees, moving costs, furnishings, stamp duty, survey and VAT will need to be financed.
Request a home information pack from the property if you’re interested in it but note you do not have to pay for this; the buyer should pay for the HIP. The most important thing, however costly, is that you hire a chartered surveyor to carry out a home valuation to check the building is structurally sound and worthy of buying it.
So when you get that first new home, use our expert Removals services to move in.