It is no secret that buying a new home - regardless of whether or not you are a first-time buyer or an experienced homeowner, is one of the bigger purchases you will make during your life. In fact, for most people, it is the most expensive purchase you will ever make. As a result, you must take in any information and advice you are offered, ensuring that you make smart decisions. Although sometimes finding your dream home can be difficult within itself, there are plenty of other things you need to consider ahead of time to set you on the right track. With that in mind, here are five things you need to consider before buying a house.
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1. Can I pay back the mortgage?
Recent studies have shown that it takes the average person 15-30 years to pay off their mortgage loans. As a result, you need to ensure that you are both prepared and able to pay back any loans you take out - after all, you do not want to end up drowning in debt and missing payments as this will only lead to more problems. Therefore, it is important that you are realistic about the kind of mortgage you can afford. Ideally, your monthly repayments should amount to no more than 25% of your monthly income. This leaves you with plenty of money aside for savings, bills, and other necessities. Any higher and you could eventually struggle to meet the repayments. However, some lenders will allow you to pay higher increments if you have a strong credit score.
It is important that you research all of the different kinds of mortgages online ahead of time, ensuring that you meet the unique mortgage qualifications that are required of you. To qualify for a mortgage, a lender will require information regarding your credit history/credit score, your employment details, and your gross income. Once they have this information, they will be able to provide you with advice on which mortgage you should take.
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2. Consider the hidden costs.
Whilst it is important that you spend a considerable amount of time thinking about your mortgage, you also need to consider the other costs associated with moving home that are often overlooked. This can include:
Valuation fees of your previous home.
Renovation costs (of both the current property and the property you are moving to)
The cost of surveyors
Moving fees (Van hire, packing equipment, etc)
Furniture/Household items.
Whenever you are moving home, you must keep on top of your spending and ensure that you don’t bite off more than you can chew financially. Establish a budget, that covers any and all costs you may encounter, then work to ensure that you meet it whenever possible. Staying on a budget can be difficult, but it is definitely worthwhile.
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3. Explore the neighborhood
You may have spent several years fantasizing over your dream home and have thought about everything from how you will style your living room to the color you want to paint your front door. However, one thing that people often forget to consider is the area to which they are moving. Whether you are moving across the country, or to another part of the same city, you must get a good feel of the neighborhood you will be living in. After all, this is where you will be spending a large amount of your time. Therefore, you should take a look at what facilities are on offer, from cafés and restaurants to leisure activities, such as pools and movie theaters. This will allow you to understand whether or not this is the kind of place you want to live in, or if you have easy access to the things you need/things that interest you. If you have small children or are preparing to start a family of your own, you may also want to research the quality of schools in the area, ensuring that you help your little ones have the perfect start in life.
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4. Think about ways you can save money.
As mentioned previously, buying a house is always going to be costly. Therefore, you need to be prepared to loosen your purse strings a little. However, when it comes to redecorating and furnishing your new home, there are several ways in which you can cut down the associated costs, without having to change your vision of the perfect home. Here’s how.
Buy furniture second hand from thrift stores or online retailers. You can often get your hands on pre-loved items that are of excellent quality at a fraction of their original price. You can also find furniture on local Facebook groups.
DIY furniture wherever possible. After all, buying supplies is much cheaper than buying the furniture outright. It also means that you have items that are totally unique - and won’t find in somebody else’s home.
Consider upcycling. This means that you can turn old items into something exciting and useful for your new home. For example, mason jars can be used for excellent kitchen storage.
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5. Think about what you are leaving behind
We are always encouraged to look ahead, not behind us. However, it is important that when moving home, you also ensure that all of your previous affairs are settled. For example, if you are currently renting a property, you need to ensure that you give your landlord the appropriate notice period as stated on your contract. After all, you do not want to have to pay for a space you are not using on top of all of the other costs associated when moving.
Additionally, you also need to ensure that you cancel or change your postal address on any subscription services you are subscribed to - after all, you wouldn’t want somebody else to receive goods that you are paying for. Furthermore, if you receive correspondence via the mail from work or your bank, you need to inform them of your change of address as quickly as possible. Similarly, you also need to ensure you register to vote in your new property, as your ballot may be associated with your previous address.