If you have decided to jump in and get on the property ladder, there will be a lot of expenses to cover. Buying a house is not as simple as popping into a store a walking away with the goods. It is a long process involving lots of people. It will be expensive, and it will be long-winded. Owning your home gives you a great deal of freedom though.
If you have been looking at properties, you might be wondering if you can afford them. Use an online mortgage calculator to see if you might be able to borrow the kind of money you would need to buy the type of properties you have been looking it. Some countries have seen mortgage regulations changes because of the financial crisis. Most people may find it difficult to borrow more than three times their gross annual salary. You will also need to have saved a minimum of 10% of the value of the home.
If you are in a good position, you probably have over 10% of the value of the home tucked away in a savings account. You will have a job that is a full-time salaried position you have held for over a year. You should also show a positive balance and minimal spending on your bank account for the last three months too. It should include you putting away savings equal to the mortgage repayment each month. You should have no credit problems or debt difficulties, and you should be under 45 years old. If all this is true, you are probably a mortgage lender’s dream customer and should be able to borrow the money. Check where you stand with an independent mortgage advisor.
Once you have your mortgage offer in place, make a formal offer on the property you wish to buy. In some countries or states, you may have to pay tax on your purchase, so make sure you have this in cash ready and available. You may need to enlist the help of a lawyer to manage the legal side of the purchase and money transfer. They can also tell you how to do a title search that will confirm who owns the property and details of mortgages or builder’s liens on the land. A survey will confirm the condition of the property and its actual value to satisfy the mortgage lender.
The costs involved in buying a house are numerous. They include the lawyer or solicitor’s fees. There will be a mortgage application or arranger’s fee as well as any broker’s fee. The title or land search and the survey will incur charges you must pay up front. There may also be additional local authority search fees and your land registration fees. When you have completed your sale, you will also need to pay removal costs. Each of these costs will incur a tax. The purchase of the property may also incur a tax like Stamp Duty. Finally, you will need to clear all bills owed from your previous address when you move.