Lifestyle

Things To Consider Before Buying A House

House hunting can be a daunting, tedious task for many people and it can be hard to know where to start, especially at the moment during this housing boom. The pandemic hasn’t helped as house prices keep rising and even seemingly hard-to-sell homes are being snapped up quickly.

There are many factors at play when making this decision, such as the type of home you are looking for, your budget, your location and more. But finding the right house doesn’t have to be so challenging.

Here are some things to consider before buying a new home..

1. Research

You should start by creating an account on a site like Rightmove so that you can set up property alerts with specific parameters you’re looking for. Doing your research on the areas you’d like to live in and the average cost of homes there, beforehand is helpful when looking at any potential homes.

You’ll also need to know how many bedrooms you need, whether outside space or off street parking is important to you and what you’d be willing to compromise on? For example, if you want a big garden and driveway but have a tight budget, you might need to compromise on the size of the house, or settle for a smaller garden depending on what’s more important to your needs.

2. Affordability

Before you start booking viewings, it’s imperative to know what you can afford. Most people don’t enjoy number crunching, but it doesn’t have to be difficult. I’d recommend creating a simple spreadsheet for your outgoings to check you’re aware of how much money you spend on average monthly and see where you may be able to cut back, if needed.

Then you need to calculate your payments to find out that what you can afford. This is to find out the price range of houses you need to be looking at and to ensure you are going to be able to afford your mortgage payments based on your earnings and outgoings.

3. Government Schemes

It’s worth knowing that due to rising property prices, the government have schemes in place to help you onto the property ladder and depending on your circumstances, you may qualify. The 3 main schemes currently running in 2021 are:

Help To Buy: MORTGAGE GUARANTEE SCHEME

This scheme was newly launched in 2021 and is aimed at First-time buyers and existing homeowners who wish to purchase their new home with a 5% deposit. The government will then underwrite 15% of the mortgage in the event that you default on the payments.

Help To Buy: EQUITY LOAN

This scheme was updated in 2021 and is for first-time buyers looking to buy a new build. The government will lend you 20% of the house value (40% in London) as long as you have a 5% deposit and you can get a mortgage to cover the remaining share of the property. In order to qualify, the property development company needs to be registered onto the scheme.

Shared Ownership

This allows you to buy part of the new build property and rent the other part. You can then buy more of the property over time by reducing the rental part so you can eventually own the property outright.

A house is a big purchase and it’s always recommended that you seek professional help when applying for a mortgage. A good financial or mortgage advisor will be able to guide you through the options available to you and may be able to find you deals that are not readily available to the average customer.

Good luck and happy house hunting! 🙂

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