Tips on Buying a Property
Placing your life savings into a property can be daunting and scary for any first time buyer. Knowing what to look for in a property and what fees you can expect to pay on top of the payment for the home is important. These tips will help buyers save money and are essential for any buyer before they commit to a move.Spend within your meansAlways know what your budget is. The added costs of buying a house can mean you spend more than you originally anticipated. You may have a budget of one hundred thousand but that doesn’t mean you can go straight for a hundred grand home. Here is a list of additional charges you need to consider when moving home:• Legal Fees – if you choose to complete your own conveyance this could cost between £500 and £1000 on legal fees. A lot of creditors do cover these costs though.• Surveys – You may need to have more than one survey completed of a new home. Bear this in mind as they can cost between £400 and £800 a time so can start adding up.• Valuation fees – can cost around £300 for lenders to check the property offers a safety for the loan.• Mortgage Arrangement fees – These can vary in price, and are often non refundable if the deal falls through.• Removals – Moving all your belongings will cost, so bear this in mind before moving.• Repair costs – There will always be home improvements that are required when you move into a home. Be sure you know what you are getting yourself into, you don’t want to have to spend thousands to repair faults in your new home. This is why a good survey is required, and why more than one survey is advisable.Most people will also need to take out a mortgage to buy a home. Don’t always take the highest offer you get. Always check the interest rates and make sure your repayments are affordable. You don’t want your new home repossessed because you borrowed beyond your means. Having an idea of the kind of amount you will get from a mortgage will help you plan and choose a suitable home. Getting a mortgage in principal (MIP) is important as you will allow you to shop around with an idea of how much you will be able to borrow. Most lenders will not give you the mortgage until you have chosen a property and made an offer. Having a mortgage in principal allows you to shop around within your price range. Having a mortgage in principal also helps when you come to making an offer on a property. If a seller sees you have already been accepted for a mortgage in principal you become a more attractive as a buyer. It is important to note that mortgages in principal do not guarantee you will get a mortgage when you make an offer. Finally, make a lower offer. You never know you might be able to buy your dream home for less than you thought. Asking if they will accept a lower offer may lead to you saving a few thousand pounds.