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Purchasing your first home is always exciting! If you have always dreamed about buying a house in London, one of the most popular cities in the world, and that dream is finally coming true, then kudos to you! It is always a good idea to listen to a voice of experience, when it is your first time doing something. Read these 5 tips from the experts themselves to make sure you have the best experience buying your first London Home!
Tip 1 – Get pre-approved for a mortgage
The best way to buy your first home is to get pre-approved for a mortgage before you even start looking at property. With a pre-approval, you will know exactly how much the lender is willing to give you, what the rate of interest is and when the payment term ends. That way, you will have a fair idea of how much money you need to set aside every month to pay your mortgage, hence what your budget should be. Don’t just agree to the terms and conditions of the first lender. Speak to various lenders, do your research, talk to experts for mortgage advice and then make your decision.
Tip 2 – Get your finances in order, months in advance
Buying a new home is an investment; an investment requires time, money and planning. You need to get your finances in order before you even think about buying your first home. You need to figure out exactly how much you are willing to spend on your home. This should include the down payment, the monthly mortgage as well as any additional costs such as paperwork, taxes and other such expenses. The rule of thumb is that no more than 28% of your gross income should be spent on housing. Working on improving your bad credit score alongside is equally important. Without a good credit score, you’re going to be charged a very high rate of interest!
Tip 3 – Make a list of your priorities and needs
What are you looking for in a house? Do you want it to be close to your workplace? Are you willing to pay a higher price to live closer to the city? Will you be willing to live in the suburbs and commute long hours to work because the prices will be lower? Would you rather live in an apartment or a house? How many bedrooms do you need? You need to figure out the answers to all these questions before you even start looking at properties. It is also important to be flexible. If you would rather live closer to your workplace, be flexible about what kind of house you are looking for. If you’re getting a beautiful 3-bedroom house a little further than you anticipated, but it is exactly what you need and well within your budget, consider buying it! Think of this as your first home, not your only home.
Tip 4 – Always account for unexpected expenses
When you’re buying a house, there will always be unexpected expenses. You might have to get some repair work done. You might need to hire a lawyer to help you out with some legalities. You might need to refurbish the house at a higher cost than you expected. You might decide to completely tear down a certain part or you might decide to build a garage. You never know what you might have to pay for. So you should always have an emergency fund for such hidden costs or extra expenses. You don’t want to be burning a hole in your pocket or living life on a super tight budget just because of a few unexpected expenses!
Tip 5 – Get the house inspected before sealing the deal
Always, always, get the house inspected before you buy it. The house could be the house of your dreams, it could look absolutely beautiful and be everything you expected and more, but that is all on the outside. A home inspection will actually tell you what is going on inside the house. Here are stylish home improvement tips. No seller is going to tell you if the house has black mould or if there are termites. The seller certainly isn’t going to tell you about the water leakage that occurred a few years ago. But, a home inspection report will give you all these details. If nothing else, a home inspection might just help you drive down the price a little during negotiations.
Considering this is your first time buying a house, you should hire a real estate agent to help you out. Real estate agents know what properties are on the market, they know the market prices and they know how to close a deal. Think of them as guides and professionals who will steer you towards the right direction while helping you make tough decisions whilst reducing your workload and stress.
