There are multiple reasons why one would buy a house. It signifies an important milestone in your life. It might signal a new beginning, such as shifting to a new city, getting married, or even having a new baby. It might sound like a dream come true when you think of buying your new house, but it can also be quite overwhelming. Buying a new house brings along with it a ton of hassle. You need at least half a year to finalize a house for yourself.
The entire process in London will take at least 4 months to shop around and look for the perfect house, with 30-45 days of closing. Many homeowners make the mistake of assuming that everything in a new house will be in perfect condition. Even if you are buying a new house, there is no such thing as the perfect house. There are quite a few things that you may overlook if you do not have it on your list.
You should also have your attorney present in order to help you draw up a contract that has a clause for fixing up unidentified problems. You should be clear about a few questions before you start looking for a house such as how much you can afford, how far is it from your important destinations, and will the value increase or decrease in the future?
The first thing that you should be doing is checking your credit report. You should do this even before you give your report away to any lender. These reports will pull all your existing data from three credit reporting agencies; Transunion, Experian, and Equifax. This will help determine whether you are eligible for a loan or not. A person who has a score of 881-960 is considered quite good in London.
If you already have previous payments pending on your credit cards and previous loans, you might get a higher interest rate while applying for a home loan. Remember to always pay your bills on time, never go over your credit limit, and do not make a lot of credit applications in a short period of time. All of this will throw your score off quite significantly. You can also try to improve your credit history before you apply for a loan.
Your lender will let you know the maximum amount that you can borrow once you get pre-approved. It is not important that you need pre-approval in order to know how much you can afford. You can easily calculate the approximate budget by using your monthly debts, projected downpayment, and annual income.
It is also important to prioritize your wish list. If you can not get all the features you want, see which ones are most important for you. Is an outdoor space necessary or do you need something that has at least 4 bedrooms even if there is no garden? These things will help you narrow down your search realistically.
You will need a good real estate agent if you want to find the home of your dreams. You should remember to check out any major challenges that the house might throw at you. Your realtor will help you analyze the major changes that you might have to take care of later. Without a proper inspection, nothing concrete would be known, but you can still look out and keep an eye for certain things such as:
- Cracking and structural defects.
- Broken shingles on the roof or a leaky roof.
- Water pressure in all taps.
- The heat retention of the doors and windows.
- Any noise that you might hear.
These things will give you quite a few problems later on if you do not pay attention to them.
You have finally found a house that you love and want to buy. It is important to not rush into the deal, since there are a lot more things that need to be taken care of. Find an expert to come and conduct a home inspection for you so that you can find out what fixing the house up completely will cost you. Certain places in London, such as Kent will allow even renters to conduct inspections. For the electrical part of things, search for Electricians in Kent so that you can get the wiring of the house checked. The inspection should take place before you sign the contract for the home.
This is quite essential since you will keep on pouring money into the house if you find issues later on. For example, if you do not get the house checked you might have electrical or foundation problems later on that will seriously take a toll on your pocket. If you find any major problems in the house during the inspection, be sure to point them out to the seller in order to renegotiate your offer.
Once you find that everything is up to date and is in working condition, you can make an offer on the house. The offer would be made based on a comparative market analysis that will be done by your realtor. This will enable you to give a fair offer for the house and will also leave room for negotiation. You need to consider a few things before you make an offer. Your real estate agent should make sure that they ask for disclosure documents. These are documents related to structural issues, natural hazards, and flood risks.
The seller is required to give this to you. If you are taking a home based on a loan, you will need around 45 days after signing your contract to close on the home. You should also consider your earnest money payment. This simply means that you are willing to put in some money to show that you are genuinely interested in the house and will not back out. Buying a home is not as easy as it sounds. There are quite a few loopholes that could get you in trouble later on. This is why you should always take these steps before you even think of buying a house.