Most people are very excited and surprisingly naïve when it comes to purchasing their first house. In many cases, people are in their mid-thirties before purchasing a home. While this means they are more likely to undertake research, it doesn’t mean they understand the process of purchasing any better.
1. The Cost Of Credit & Finance Options
Houses are expensive and you’re going to need a mortgage. But, you don’t have to go to the bank or even a specialist mortgage company. There are plenty of genuine online options to consider.
However, what is important is the cost of your finance. Make sure you’re aware of how much interest you’re being charged a month and what the overall payment will be. A two hundred thousand mortgage can cost you three hundred thousand by the time you’ve repaid it all.
You will also need to look at the conditions, some mortgages will let you overpay, and others charge you a fee to do so. While this may not seem relevant when first taking out the mortgage if your finances improve you can save a considerable sum of money by paying your mortgage off early.
Lastly, don’t forget to consider the closing fees. These may need to be included in the mortgage and can be surprisingly high.
Make sure you’re aware of all your options before you set your budget and start looking.
2. Why A Building Survey Is Essential
The next thing that many first-time buyers overlook is the building survey. This is not the same as the mortgage company survey which simply confirms the valuation.
The building survey will look at the structure of the building to see for any cracks, insulation issues, electrical problems, and even see if there are any pest issues.
The purpose of this is to identify any issues that could be expensive for you to repair or may even be dangerous. This will allow you to adjust your price, giving yourself enough money to cover the repairs. You should note that it is possible to negotiate on price.
It is important to use a reputable building consultant, this will help to ensure the survey covers everything and highlights the issues you need to be aware of. It can’t be stressed enough how important this is.
3. Monthly Bills
In the excitement of finding the right house, it can be easy to forget to look at the cost of your monthly bills. This can’t be set beforehand as the size of the house and area it’s in will affect the exact costs.
You must evaluate the cost of running your house and the mortgage to make sure that your income is sufficient. You should always allow yourself a little leeway to cover the unexpected.
“Making sure you understand the cost of your energy bills for your first home is also important to note before you make a purchase. Brand new A-rated boilers are great way to keep monthly heating costs down. In some cases households can benefit from a boiler grant under the ECO 3 initiative”
4. Emergency Repairs
Another thing that first-time buyers often overlook is emergency repairs. The building survey won’t pick up a damaged shower hose or a leaking shower tray. These are internal issues and you’ll probably only find out about them once you’ve moved in.
At this point, you’ll need the funds to cover repairing these items. It can be difficult to find extra money if you’re not prepared. That’s why, as part of the purchase process, you should allow yourself a small emergency fund. This will help you to deal with the unexpected issues, and there will be some.
5. The Value Doesn’t Always Go Up
In general, the value of a property goes up. This is simply the way housing markets work. However, that doesn’t mean you can expect to make a lot of money quickly. House prices sometimes rise very slowly and they can fall. This is why it’s important to have a reasonable deposit. If you don’t and the price falls you may find yourself unable to sell. The reason will be that selling won’t raise enough funds to cover the mortgage.
While in the long-term the price should rise, you must be prepared for it to stay the same or reduce, this will make an increase in value a bonus toward your retirement fund. Or, you can release equity in the future for that special purchase.
6. Selling Isn’t Fast or Easy
As you’ll have discovered from purchasing your first house the buying process is not fast. This is also true of the selling process. But, it’s not just the time the process takes. Before that can start you need to find a buyer.
Depending on current market conditions it can be difficult to find a buyer. You should be aware before you buy the home that you can’t usually sell your home and release any equity quickly.
Of course, this probably isn’t your intention when purchasing but it is important to be aware. If you have any doubts before you buy make sure you deal with them first, you don’t want to be struggling while waiting to find a buyer at a loss.
7. You Can’t Plan For Everything
Finally, one important lesson you’ll learn as a homeowner is that, despite all your best efforts, you can’t plan for everything.
There will be things that go wrong, items you’ve overlooked, and other issues. But, there is always a way to deal with them. Simply stay calm and look at your options and you’ll find the best way forward.
Being aware that there will be issues in the best way of being prepared to deal with them.
Buying your own home is an experience that everyone should have. It’s a great feeling to come home and know that the property is yours and that you have the freedom to decorate it and adjust it according to your needs.
While there will be issues you can deal with them. But being prepared for the above seven issues will help to make sure your home buying process goes smoothly and without regret.