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No matter if you are moving, or improving, our newsletter is packed with the best tips, tricks and ideas to help you dwell well.
This might sound like the most obvious thing in the world, but the vast majority of people wade into the property world by themselves and try and figure it out as they go. There is a lot to consider. Lots and lots of moving parts. So you should really sit down at the very beginning (this is when the thought even enters your head to buy) and speak to a mortgage and property expert.
The best professional to ask is a mortgage broker as they are independent advisors, get paid by the Banks and don’t need to sell you anything. They are also highly regulated. A mortgage broker can help you with more than just the mortgage, they have experience in dealing with Estate Agents, Conveyancers, Banks, Insurances and surveys. They will also have a feel for the local market and what prices people are bidding and paying . Don’t be afraid to ask for help.
You should speak to a mortgage professional at the start of your journey. They will advise you of what you need to do to prepare for getting a mortgage, this may include a savings and spending plan. It’s of paramount importance when you apply for a mortgage your finances are in the very best shape possible.
A mortgage advisor will be able to give you a detailed financial plan to follow. Knowing how much you can afford is essential BEFORE looking for properties. It will help you identify the areas that you can afford and you can then focus on this price bracket and below – no looking above – it doesn’t help you.
It’s also vital that you know how much your repayment each month will be, this lets you plan/see the impact that a mortgage will have on your day to day life. It’s a long term commitment so you need to know your numbers!
Lots of first time buyers get overwhelmed once they begin looking at possible properties and focus too much on fantasy homes above their budget. This is a waste of time and can lead to disappointment. Once you have gotten your max budget, only view properties within this range !
Don’t go looking at properties just outside it – this will only lead to disappointment and frustration.
You need to identify what the critical 2/3 components are for you – are they:
Try to keep your focus narrow and really only go for the must haves – everyone wants it all – but that comes with a price tag that’s definitely not for everyone!
Once you have nailed down the must haves you will see that it brings much needed clarity to your search. Be prepared to sacrifice some of the nice to haves as it is a competitive market and people are largely chasing the same things in a property.
This can be an incredibly stressful time. Remember that an asking price is just that – an ask, there is no obligation on you to bid that amount but there is also no obligation on the vendor to sell at that price. With the market extremely competitive at the minute, it’s worth remembering that many properties are now selling for above asking.
Before you make your first bid – remember you max bid, do not get sucked into a bidding contest and bid above your max offer. Plan ahead. The bidding can be very rapid with multiple bids in a day so always remain calm and don’t jump into anything. Always take your time before making a new bid and ensure its within your price range.
When the day finally comes and you get an offer accepted …… don’t get too excited as there is more to do . You will need to get the house surveyed to make sure there are no problems with the property; don’t try to save money here, go with a reputable surveyor. If there are any issues identified in the survey you can still pull out and avoid a huge problem.
Your mortgage broker can get your full loan offer from the Bank and it also gets sent to your conveyancer.
The legal process also needs to happen at this time and try to be patient as it can take a while. Your solicitors again should be a reputable firm with experience in conveyancing over many years. They will guide you through the legal documents and get you to sign when its all ready.
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