Buying your very first home for your family is a massive milestone and one that you can be very proud of achieving. This is especially true considering that Wales’ proportion of owner-occupied households is currently sitting on just 71%. Unfortunately, as exciting as buying a house can be, the process itself can be daunting and complex. In an effort to help simplify it as much as possible, here is a guide to getting started.
Save up your deposit
According to experts, a total of 5% of the property value of the house you are keen to buy is the absolute minimum you will need to put down as a deposit. However, you will have a much wider choice of lenders if you are able to produce 10% and up. With 25%, you will be able to secure yourself a much more attractive interest rate, which will obviously benefit you for many years going forward.
Know your budget
There are plenty of hidden costs that go into buying a house. Did you know that you will probably be looking at paying an additional 15% on the offer that you put in when you factor in aspects like stamp duty, conveyancing, etc.? Therefore, don’t be too generous with your budget when looking into properties that you think you can afford.
Decide what mortgage you want
There are many different types of mortgages to choose from, each with its own pros and cons. Websites like www.themoneyhub.co.uk can even assist you in applying for a mortgage if you have a bad credit history. Usually, you will need to choose between a repayment or interest-only mortgage. While the latter is cheaper, a repayment mortgage is the fastest, least complicated way to pay off your debt.
Make an offer
You will need to make an offer based on the asking price when you find a property that you love. It is then up to the seller to accept it or not.
Secure your mortgage
Once your offer is accepted, you will need to apply for your mortgage. Doing so should be relatively straightforward if you have already gotten your finances sorted out and know what kind of mortgage you require.
Hire a conveyancer
A conveyancer is a professional who takes care of the process of transferring your new house into your name.
The next step is to exchange contracts. This will include all relevant details of the sale and must be agreed upon both by you and the seller. The sale is considered complete when you sign the contract, pay for the property and take ownership.
You are finally a homeowner! You may want to organise a moving company to help you move into your new home, and you will need to take some time to tie up loose ends by paying stamp duty and settling any outstanding costs with the conveyancer.
From there, all that’s left to do is enjoy your new house. You’ve earned it!
This is a guest post.