While owning a home can be quite confusing, if you are equipped with the right information and knowledge, you can definitely have a smooth experience all throughout the process.
Step 1: Laying down your road-map
First thing’s first – prepare everything. Before anything else, you would need to iron out macro details. This means identifying and understanding your financial capability. Although there’s no harm in aiming for your dream home, you should also be realistic – you don’t want to commit to something you cannot cope with in the future.
Hence, it is extremely important to set your budget. Aside from considering the price of the house, you would also want to zero in other financial factors that you would encounter in the future, such as paying for other financial obligations, health care expenses, and property damage repair, among others.
Step 2: Explore the realities of mortgages
After reflecting about your financial capacity, the next step you should focus on is loan shopping. This step can be quite tricky and complicated, especially for people who are still learning the ropes of mortgages. While loan shopping can be as complicated as it could be, you should never be overwhelmed as lenders will guide you throughout the process.
What you would want to do is to contact different lenders, starting off with your current financial institution or bank.You may also ask your colleagues and friends who have prior experience in home loan as they may point you to a reliable and versatile lender. If both options do not materialize, you may opt to retain the services of a mortgage broker who can suggest different types of home loans that will suit your financial capacity and mortgage needs.
Step 3: Go hunting
This is when everything gets more exciting and interesting. After accomplishing the first two steps, the next step is to find a property. Let your budget be your guide in finding the right property, making sure that it fits your budget and will not drag you to financial burden in the future. Before formally doing this step, you may want to talk with your family or spouse about it so they can give you suggestions on where to get property best. It is likewise vital to get advice and hints from real estate agents. These professionals know the ins and outs of the real estate industry so they are best qualified to assist and guide you in your property hunting. You may also supplement your real estate agents’ efforts by doing your own research online.
Another way to have an easier time finding the right property is to personally visit properties in your shortlist. When you do this, don’t forget to bring a camera with you so you can take pictures or videos of the property, which you can later use for reviewing and deciding whether or not the property is a good choice. While in the process of looking for a property, you may also want to start consulting with solicitors and conveyances who will help you prepare documents for the registration and transfer of your property. These legal professionals will also serve as your legal advisers who will teach you the ropes on contracts and other related legal documents and requirements.
Step 4: Inspect and commit
After finding the right property, don’t sign any papers yet, instead, do a thorough research and inspection first. Some properties may be very appealing at first, but when you starting doing close inspection, it may be filled with damaged plumbing system, faulty wiring and rising damp. The rule of thumb is before committing into buying the property, make sure that what you will pay for is worth it. Hence, it is important to hire inspectors who will do thorough inspection of the property.
When the inspection’s done, and you are satisfied with its outcome, what you should do next is to commit into buying the property. However, you must keep in mind that the price tag of the property is not always accurate as it may change depending on the negotiation’s conclusion. Real estate agents say that it is reasonable to make an offer within five-percent of the asking price; however this may increase when the real estate market is depressed. It is also a good idea to bargain but not to the point that you are asking for unreasonable price. When you are satisfied with the price, let your legal advisers review the contract and suggest additional terms into it.
Be sure not to sign any documents without your solicitor or conveyances reviewing them. Upon your legal representative’s and lender’s approval, it is time to pay the deposit. After which, the contracts between you and the vendor will be formally exchanged, finally sealing the deal. Keep in mind that after the exchange of contracts, pursuant to related laws, you are required to go with the purchase otherwise you may face penalties.
Step 5: Make it look nicer
This is definitely the most interesting and thrilling step. After paying for all initial financial requirements, and accomplishing legal aspects of the purchase, what you need to focus on is the lighter side of the purchase, which mainly revolves around jazzing up the property. In order to have a professional touch in your home’s interior and exterior design, you would want to retain the services of experienced and reputable home builders.
Are you thinking about improving the property’s bed rooms, kitchen, or bathrooms? Then let your home builder know about your preferences, and they would make your imaginations come to life. It is important to communicate your concerns and preferences with your home builder so your dream home will be fully realized.
Purchasing a property that you will call your home for years can be overwhelming and confusing, but if you do all the necessary steps right, you will surely have a great time. Furthermore, in order to know more about property purchase, there is no harm in consulting with real estate professionals.