5 Best Kept Secrets To Buying A Home

Buying a home can be one of the most exciting parts of life, and is a celebratory milestone for many individuals. Whether you’re purchasing a property on your own or with a partner, there are a few things that you should know before you start the mortgage application process. Saving for the deposit can be the most challenging part of buying a home, but whether you’re using the help of a payday loan lender to cover your financial emergencies, or you’re tackling a new job with a different wage, you are sure to get to the final hurdle at some point. This process can be a daunting prospect, mainly if you’re purchasing your first home, so to provide you with a helping hand, we’ve put together a few best-kept secrets to help!

Keeping Your Money Where It Is

One of the things that many home buyers tend to do when it comes to their funds is to move it around to different accounts to take advantage of the best interest rates and perks. However, in the 3 to 6 months leading up to buying your property, you’re not going to want to take any additional chances when it comes to your credit profile. All mortgage lenders need to ensure that you are reliable with your money, and a steady paper trail can help to ensure that you are getting the best deal possible on your mortgage. If you’re building up too much debt in the time before buying your property, open numerous new credit cards or happen to become frivolous in your spending before purchasing your property, then you may find that your chances of getting the best deal on a mortgage will become limited. Don’t change your spending habits just because you are getting closer to your end goal. Stick to it and buy your home as planned.

Avoid Properties With Additional Sleeper Costs

When buying a new home, many new homeowners tend to just focus on how much the mortgage is going to cost them month-on-month, without considering any of the additional fees that come with the property. Aside from the broker fees and other charges that your lender will charge you merely for applying for a mortgage, your property itself will also have some fees month on month which you need to be aware of. These include property taxes, utilities, maintenance fees, repairs and in some cases even property tax increases!

Double Check Your Property ‘Under The Hood’

Just like you would with a new car, you need to ensure that a property inspector double checks every aspect of your home. While this can cost you an upfront fee (usually around $150-200), you’re much better off paying this money up-front than finding out your home has numerous issues in the future, such as damp, which are extremely costly to repair. This decision can save you thousands of pounds in the long-run so make sure that you have given your property a thorough check before committing to buy.

Don’t Run With Your Emotions

While this is much easier said than done, make sure you’re not buying a property solely because you’ve fallen in love with it. While it is important to love your property, its location and everything about it, you must also think about the future. Look at property’s potential as opposed to what it already has. It may need some renovation currently, but that will often mean your property will be cheaper to purchase in the first place. If you move into a property just because you fall in love with it from the moment you walk in the door, due to the way the current owners have decorated it or how the showroom has portrayed it, then you could be left with a broken heart.

Get Pre-Approved For Your Loan

While you may have already been pre-qualified for a loan, you are also going to need to ensure that you are pre-approved, to guarantee that you are not left disappointed at the final hurdle. Almost anyone can be pre-qualified for a loan as long as they meet the standard requirements, but being pre-approved won’t happen until the lender has looked through all of your financial information to determine how much they’re going to lend you to buy your property. Once you’ve been pre-approved, you can then start looking for properties that match your budget, as opposed to shopping around for homes that you can’t afford.

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