Financing A House Move: A Step By Step Guide
It’s no secret that getting onto and climbing up the property ladder have become more challenging in the last decade. It’s harder to get a mortgage, it’s difficult to build up a deposit when you’re renting, and there are all sorts of costs to consider when you reach a stage when you’re ready to put an offer in and set the ball rolling.
Nevertheless, buying a house remains a dream for many. If you’re hoping to purchase your first home, or you’re moving to pastures new, here’s a step by step guide to help you get your finances in order.
Setting a budget
The first thing to do when you’re starting a property search is figure out how much you can afford to spend. There’s no point in trawling online galleries looking at properties that are way over your budget. Make an appointment with a mortgage adviser or do some research online to see how much you could borrow. This will give you an accurate idea of the kind of house you can afford, and it will enable you to filter the search results.
If you find a mortgage that looks perfect, and you’ve checked all the terms and conditions, you can apply for a decision in principle. It is worth noting that you may need to pay a fee for the services provided by your mortgage adviser and there may also be a charge added by the lender. You’ll also be charged for a valuation survey by the lender.
Once you’ve set your budget, and you’re confident you can get a mortgage, you can contact estate agents and look for properties online.
Paying the right amount
If you’ve fallen head over heels for a property, and you’re desperate to make it your own, the next step is to ensure that you pay the right price. Consider your own situation, for example, if you’re a cash buyer, you have no chain and you’re ready to move quickly, and also the length of time the property has been on the market. If the house is brand new to the market, and there are already several viewings booked, you might need to pay the asking price to secure it.
If the property has been up for sale for several months or there hasn’t been much interest, it’s worth trying to negotiate a deal.
Seeking legal advice
After submitting an offer and agreeing on a price, the next step is to contact conveyancing lawyers. These legal experts take care of property searches and transferring the property from one owner to another. There are costs involved at this stage, and you should be prepared for legal fees, search fees, and administration charges.
If you have a help to buy ISA, you’ll also have to pay a fee for your solicitor to access your funds and apply for your bonus. Most solicitors will take a payment for searches towards the beginning of the legal process, with the remainder of the charges payable upon completion.
Buying property and moving house don’t come cheap. In addition to legal fees and the purchase price of the house, you’ll also need to factor in estate agent fees, surveyor charges and stamp duty if this is applicable to the purchase.
If you’re hiring a removals company, you’ll also need to add this to your overall bill.
Buying a new house is brilliant, but it can also be costly. Hopefully, this guide will help you prepare your finances and eliminate the stress of unexpected charges.