HOW TO NOT OVER STRETCH YOURSELF WHEN BUYING A HOUSE


Buying a house is about the biggest purchase you’ll make in your life. Minimizing the chance for mistakes and irreversible decisions will save you considerable sums of money. Here are some tips on how not to overstretch yourself when buying a house.



Shop Around

Shop around not just for the house but for the mortgage lender as well. You want to ensure you're getting the best interest rates. Remember, each lender has different interest rates and loan durations, which can be negotiated if you have done your due diligence. Find out the market value of a property beyond the price your realtor gives you. Every house has definitive features about it. Clarity on your preferences helps to narrow in. Do you prefer a big kitchen, do you want an open plan, must there be a kitchen garden, do you prefer picket-fences, an open driveway, or an enclosed garage? Do you prefer naturally lit rooms or daylight darkness is more preferable? These are some of the things that go through one’s mind when thinking of where to settle. 

Have a Budget

Identify your budget, then shop around neighborhoods that suit you. Failure to do this will cause you to look at houses you very well can’t afford, eventually making you discontent when you finally find a house that meets your budget. Buying a house is not just about the mortgage amount. There are other fees to consider like; mortgage lender fees, realtor fees, lawyers’ fees, stamp duty, valuation costs, deposit requirements, cost of repairs, movers costs, and extra furniture considering you may likely be moving to a bigger house upon purchase.

Sleep on Your Decision

To avoid making an emotional and not thought out decision, sleep over it upon identifying a property you like. How you feel in the morning about it determines a lot. It will also give you a chance to research additional structures that may be coming up in the neighborhood in the next 5 years or so. Visit the area at night too, to gauge the security of the location and the aura at different hours, public transport noises that may be close by like a train station, and if the streets are safe enough for children.

Inspect Before Pulling the Trigger

You do not want to compromise on buying a house that has visible repair requirements. Different variations of paint on the walls indicate hidden cracks or quick mends. Know the estimation of fixtures required before settling on the price, as this amount will set you back. Purchasing as-is and getting a contractor to fix the house according to your taste may be less costly than allowing the seller to repair. Your agent should let you thoroughly inspect all areas of the house. Failure to do so indicates there is something to hide.

Loan Approval

Don’t overlook the need to have your loan approved and processed before signing any purchase agreement. Other financial engagements that affect your credit score, before your mortgage has been approved, may change the lenders' decision to proceed. To easily calculate your tentative monthly payment, try out the budget calculator at propertypriceadvice.co.uk/budget-calculator. By answering a few questions, this calculator determines the capacity of your income to sustain required deductions. Once you have a comfortable figure, you are clear on how much you are willing to spend on purchasing your new home.

Be on The Lookout for Property Auctions

Every so often, mortgage owners face foreclosure, and lenders put these properties up for auction. As the lenders are keen on recovering the amount owed to them, they do not necessarily sell the property at market value. Buying a house at a property auction can get you a great bargain.

Valuation and Re-Sale Value

You want to ensure that the property you are about to purchase can fetch a considerable amount, should you wish to sell it for whatever reason.

Buying a house can be taxing, and you want to ensure you get it right. Ask all the questions you can think of. It is better to ask and be knowledgeable than pretend to understand and end up feeling lost and engage in an unclear venture. Fend for your finances as well as your feelings by making an informed decision.

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