Categorized | Investment, Residential

10 things you should do before buying a home

Owning a property is a fantastic experience. An investment, the price of your home might increase substantially in several years’ time and it could be sold for a very large profit. Before buying a home, there are many things which you must do.

Improve your credit rating

It will be difficult to get a mortgage if you have a poor credit rating. You can obtain a copy of your credit report from Experian and find out what your credit rating is. If you discover that you don’t have a good credit rating, you’ll know what’s affecting it and what has to be done in order to improve it.

Pay off your student debt

You cannot apply for a mortgage if you have student debt. It doesn’t matter if you owe £500 or £15,000 because a mortgage lender won’t approve your application. Before you buy a home, you should pay off any student debt.

Save for mortgage fees

As well as raising enough money for a deposit, there are many fees which you have to pay. Product Fees, Valuation Fees and Insurance Penalties are some of the many mortgage fees that you have to pay which can be thousands of pounds. Even if you choose a mortgage which charges a lower rate of interest, higher mortgage fees might apply.

Work out your budget

Even if you’re desperate to buy a home, you might be cutting back too much in order to save for a deposit or to pay mortgage fees. You might also apply for a mortgage which is beyond your means. By creating a budget, you can set aside a reasonable sum of money every week or month which can be spent on your mortgage application.

Look around

Even if you find a property which is within your budget, you might find another one in a couple of months’ time which is more suitable. When you look at properties that are being marketed by other Estate Agents, you might find an affordable home which matches your expectations.

Get pre-approved

The house buying process can be very stressful. However, when you are pre-approved for a mortgage, you will know what your budget is and the entire application process will be simpler.

Ask for help from a surveyor

When you have found a home which you want to make an offer on, it should be surveyed. When a chartered surveyor inspects a property, they will identify structural issues or any factors which might cause a sizeable repair bill. A chartered surveyor only charges a couple of hundreds of pounds and the advice they give is invaluable.

Know what type of home you want

If you will be the only person who’ll own a property, you could move into a one bedroom flat. However, if you have many dependants, a two bedroom or three bedroom property could be bought instead. Other factors should also be considered too – do you want a garden or a patio? How about a terraced house? Should it be in the countryside? When you know what property you want to move into, you won’t waste your time.

Look out for public services

If you and your partner move into a home and want to start a family, it should be near good schools. When your children live near their school, they won’t spend much of their time on travelling.

Get help from an Estate Agent

The amount of commission which an Estate Agent charges differs. Some Estate Agents only charge a 1% commission rate whereas others might ask for 3%. Before buying a home, you should find a cost-effective Estate Agent in order to help you.

This post was brought to you Loans with logbooks. We provide information and advice on the latest information on logbook loans.

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