Tips for First-time Home Buyers

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Buying a house is hardly a breeze, especially for first-timers. But there’s no need to be a real estate expert for you to do it right. Here are tips to make the job easier:

Determine much money you have to save for the deposit.

Prior to looking at properties, be sure you have set aside money for the deposit. In general, you should save at least 5% -20% of your desired home’s cost. If you can save above 5%, you will be able to access a bigger range of economical mortgages that may be available on the market.

Know how much you need to pay for other home-buying costs.

Aside from your monthly mortgage payments, you need to pay other costs as well. These include, among others, survey costs, removal costs, initial furnishing and decorating costs, etc.

Be sure you can afford the your monthly payments.

It’s smart to have a budget prepared before you begin searching looking for a property. The process for mortgage approval has now become very tough. Lenders are going to do a background check to see whether you can pay the mortgage, as well as ‘stress test’ your financial standing as though your circumstances were different – for instance, if your business suffered or if there was an illness in the family.

Explore home-buying options supported by the government.

A lot of government-backed schemes provide home buyers assistance with their finances. While you may use one of these programs, however, lenders will still take measure to ascertain that you can afford to pay off your mortgage.

Find a good mortgage.

There are various mortgage deals you can pick from, so it can be tricky for you to choose one. There are lots of considerations to make, for one, so it’s a must that you do your research and speak to mortgage brokers and other professionals. Check out homes for sale in beaumont lexington ky here!

Freehold versus Leasehold

If you would like to buy homes for sale in lexington ky, most probably, you’ll buy the freehold, which means you will be the owner of the property, along with the land on which it was constructed. Buying a flat means you’ll be paying for leasehold, or paying for a share of the freehold.

Getting a Mortgage

Regardless of the mortgage you apply for, the lender will want to know whether you can continue making repayments even if interest rates increase, or if there are any unexpected events that would reduce your financial capacity. To prove that you have the income you have stated, you may have to submit bank statements and payslips. If you’re self-employed, you may have to provide tax returns and business accounts put together by your accountant for the last two tax years. To know more about home buying, visit http://www.dictionary.com/browse/homebuyer.

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