If you want to make a really good decision for your future – or the future of your family – start seriously thinking about buying your own home. This might be a home that becomes the base for your family, or it might be something you rent out to give your family another source of finance through rental income and investing.
But home-owning is a big responsibility. There’s a lot to consider and think about when it comes to home ownership. If you’re thinking about getting your first home for yourself and your family, you’ll have to also confront the reality of home ownership, it’s a very big deal indeed. When you buy a home, you might be paying bigger bills than if you were renting. You need to understand these costs and what they add on top of a mortgage. If you are unsure, you might need to hold off on buying. A lot of people can sink in tremendous debts because they were caught unawares by big bills. Of course, when you own a home, you need to repair it. You can’t just call up the landlord and get them to solve your issues, unfortunately. When the drains stink, the doors jam and the pipes leak, you’ll need to foot the bill for any repairs.
One more note about costs – mortgages have been lent out by irresponsible lenders in the past. It’s uncommon now, but if you ever find yourself in a situation where a mortgage repayment isn’t a reality – speak to your lender as soon as possible. Help like this 1stukmortgages.co.uk/bad-credit-remortgages/remortgage-transfer-equity/ is always available. You just need to look for it!
If you think that you are ready for the responsibility and costs of owning a home, you need to think about how you can turn that decision into a reality. The actions you take will determine how much of a reality that idea becomes. You can only become a homeowner through a serious investment of time and money.
Money? Yes – you need to seriously save up so you can afford the largest deposit possible. What a deposit does is safeguard the banks and the economy from dodgy lending. It also opens up the market for you as a bigger deposit means a more expensive property and a larger mortgage. A good deposit also means you will pay less towards the cost of your mortgage, a deposit that accounts for a higher percentage of the cost of a property will mean that you pay a lot less overall, cutting the cost of repayments depending on the size of the deposit. A deposit will be made up of around 5% to 10% of a property’s value. In fact, you’ll find it hard to find a borrower that lends to you on a deposit lower than 10% of a value. You want to honestly aim to hold a 20% deposit to get the most bang for your buck. It’s a hard path to save up that amount and it will take years, but it is worth it. Especially if it eats into your repayments.
Your deposit tells you what home you can buy. A deposit of £10,000 will be suitable for homes that cost under £100,000, but not homes that are approaching half a million pounds in value. If you’ve got £20,000 saved up as a deposit, that means you’re looking for a property in the range of £100,000 to £200,000. You’ll need to be sure that your prospective home is sound and suits you and your family with its facilities, location and rooms. Please make sure you visit a home before you buy, as it can be very hard to undo any mistakes made at this point. Shop around and find the best house for your budget.
Once you’ve identified a house and you’ve got a lender ready to back you, you need to make an offer. The work isn’t over if that offer is accepted though. You need to inspect the house, ensure you can