It is the biggest purchase of your life – Let’s make sure that you get it right!
11. Work out what you can afford
What you can borrow and what you can afford are 2 different things.
- If you are going to stretch yourselves to buy the biggest property you can afford, will you be happy with the compromises to your lifestyle such as socialising less?
- Would you be more comfortable spending less and having more disposable income?
This is where a Broker can really help. They can provide “real–world” figures and help you define a realistic budget you are comfortable with.
12. Private deal
If you see a road you would really like to live down, why not write a nice letter and post it through the letterbox’s of houses that you like. Owners may be keen to sell because they won’t have to pay an Estate Agent’s fees. This can really work!!
13.Buying at auction
- The Golden rule regarding buying anything at auctions is to go a couple of times before you want to buy – just to get a feel for things.
- Make sure you get a full survey to make sure you know what you are buying.
- Get a solicitor to check for legal issues
- Have a maximum “walk away” price for the property and STICK TO IT!
- This is different to a normal purchase – as soon as the hammer goes down it will cost a fortune to pull out
- You will have to pay a 10% deposit, YOU WILL LOSE THIS IF YOU DONT COMPLETE WITHIN THE ALLOTED TIME (USUALLY 4-6 WEEKS)
- Use a broker to arrange the finance first. The lender he selects may not be based solely on the lowest rate but also the ability to complete quickly.
- If you have a property to sell then make sure you have completed on the sale before going to auction. As a delay could cost you BIG!
14. Ask them to take the property off the market
Make your offer conditional on the basis that they take their property “off the market”. This will help to stop you being gazumped (where a seller accepts a higher offer having accepted a lower offer).
Either part can pull out right up until exchange of contracts.
15. Minimise your financial exposure
Some property chains are simple -if it’s just you and the seller and both you of you want to complete as quickly as possible then you can pull out all the stops.
However most property chains are more complex and may take longer to form. As soon as you put in an application with a lender they will carry out the valuation/ Survey. This could be up to £1000 (depending on type), the way I work with my clients is to hold off on this until the chain forms. If the chain collapses then you haven’t lost the survey fee.
The same goes with search fee’s (£200 – £250). Get the mortgage offer in place and make sure the chain is fully formed before you fork out!
5 More Home Buying Tips in the next blog………….
Your home may be repossessed if you do not keep up repayments on your mortgage.
Your initial mortgage consultation is obligation free. There may be a fee for our mortgage service of up to £395 though in some circumstances this may be waived. Being independent we also offer a “fee only” option which is typically 1% of the amount borrowed and any commission derived from the lender is returned to you. The precise amount will depend on your circumstances and mortgage loan amount, and will be discussed and agreed on before you make a mortgage application.