Buying a house, particularly if it’s your first house or you are a first time buyer, can be a stressful experience, but in all honesty it doesn’t have to be if you plan everything out and take a bit of time to research what you should be looking at and doing. In this post we will run through some of the steps you should take when it comes to buying a house.
Find a mortgage advisor:
One of the most important aspects when buying a property is to find the right person to advise you on your choice of mortgage – there are hundreds of different options when it comes to choosing a mortgage and due to the problems which have been experienced in the marketplace today, advice is absolutely crucial to finding the best deal for your circumstances.
Due to the economic climate, the Government in the UK has launched many new initiatives including the new buy scheme – in more recent times, it’s also become possible for buyers to source 95% mortgages again (albeit with strict lending criteria in place). Remember, the mainstream banks aren’t always your best option, so shop around.
Achieve in a decision in principal:
Sellers and estate agents will take your more seriously, and in some instances it will even be a pre-requisite to making an offer on a property, if you have a mortgage decision in principle. All that this involves is simply the lender performing a credit check against your name – getting this however, as well as obviously having the deposit for the mortgage available, will make the process a lot smoother.
In this marketplace, it’s important to take a long-term view – when buying your property think about whether it’s somewhere you can live for the foreseeable future. In the current climate there is no guarantee that your house will increase in value (in fact, there is obviously never a guarantee) and over the short term, it may even lose value; prepare for the worst and ensure that you are buying a home you can, and want to, live in, rather than merely treating it as an investment.
Improve your credit score:
Lenders are intolerably fussy – they will review everything and even the most insignificant glitch on your credit report can lead to your application being declined. Make sure you check all the boxes: don’t miss rent payments, perhaps even consider taking out a few credit cards, spending some money on them and repaying the balance each month via direct debit. Just make sure you have a credit history behind you, and at least three month’s worth of bank statements, too.
Review house prices:
One of the first things you should be doing prior to deciding to buy in a particular area is to review house price trends – take a look at websites like zoopla.co.uk and review property prices for the streets or areas you are thinking about making a purchase in. These services will give you an overview of the property type and the sale price, as well as any trends up or down in house value in the area.