Buying A House: How To Get Prepared

| February 19, 2016 | 0 Comments

Buying a new house can be a big deal, both financially and socially. Once you own a home, you’ll have a secure financial situation as well as heaps of independence. It’s important to get your foot on the property ladder as soon as possible, but in today’s current economic climate it’s easier said than done. It’s very easy to slip up when searching the market for a house – you may run into unwanted debt or face the humility of being gazumped. If you plan out your house search, though, and know what to expect, you’ll be much better equipped to find the home of your dreams. There are a few ways you can make the whole process easier on yourself.

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Sell your current home quickly

Rather than have a lot of cash locked up in your current home and existing mortgage, get it on the market as soon as you decide to move. This gives you longer to find a buyer. If things go quicker than usual and your current home sells straight away, then great! You can use the money to fund your next mortgage. Move into a rental property until you find your dream place.

Sort out your credit score

If you have a bad credit score, you’ll find it very difficult to get a mortgage from the bank. So how to improve credit score? Simply get your loans and credit cards in order. The best way to do this is to meet all monthly payments promptly and efficiently. Once lenders can see you are good at handling debt well, they’ll be much more likely to give you a mortgage.

Save up a reasonable deposit

The bigger deposit you can save, the more favourably a bank will look at you when it comes to applying for a mortgage. Not only will savings look good on your mortgage application, but they’ll also help you clean up any debt to improve your credit score. A large deposit means your mortgage will be fairly small. It’ll also be reasonable to manage, meaning smaller monthly repayments. You’ll also be able to pay it all off much quicker.

Organise a survey

When you find a property you like, don’t forget to have a surveyor take a look. They’ll look around the place and will see if there is any significant damage that needs taking care of. They can also tell you how prone the house will be to damp and leaks. Surveyors can be quite expensive, but they could save you a lot of money in the long-run.

Move fast

Once you have found your dream house, you need to move quickly. Get a surveyor in as soon as possible, and let the seller know of your interest. Not only will this let the seller get organised in time, but if you are keen, you are less likely to be gazumped. The quicker a sell is, the easier the whole transaction is for all parties.

Now all you need to organise is the moving company!

Category: Home Loan

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