Buying a property is one of the major and probably the most expensive investment you have in your entire life. It is considered as life accomplishment if you can have a permanent home that you can retire to every day. Hence, to make proper and fully-informed decisions, here are the things that you need to know first before you buy a property.
1.Speak to your financial advisor
First things first, it is important that you speak to your financial advisor before you buy a property. In that way, you will know exactly what you can’t afford and cannot. They will also help you to choose the right type of mortgage that is suitable for the job that you have.
There are additional charges in the property buying process that you shouldn’t ignore either. The stamp duty and deposit are included as well. It may seem like little values but when you sum it up, it can make up to 10% of the entire amount that you’re going to pay.
2.Improve your credit profile
Before you plan on applying for home loans from banks, you should clean and improve your credit profile first. Fix any issues that you have with your personal credit file and make sure that there are no pending payments anymore. Make sure that you are also registered on the electoral roll.
Individuals who have high credit rating have higher chances of getting qualified for a loan. Hence, it is important that you improve your credit profile before you hand the information to the lender. They may or may not increase the interest rate depending on how your credit profile will appeal to them.
3.Do your homework
It’s important that you do your research before you start seeing properties. For instance, wise buyers would make sure to visit the property at different times of the day. It may seem peaceful in the morning but you wouldn’t know if your neighbor is blasting hardcore music or the noise from the traffic outside wouldn’t allow you to have a good night’s sleep.
Also, doing your research will help you set priorities in looking for a house. Factors such as local schools, location, neighborhood, crime rates, and amenities that can be walked such as restaurant, gym, bar, or shopping mall can affect your decision.
4.Know exactly what you want
You can only start house hunting if you know exactly what you are looking for. You can sketch it out. The number of bedrooms, the amenities that you want to have such as pool, garden, off-street parking, and attic. Letting your agent know what you want to have on your property will help you to choose the right house to buy. However, this isn’t a pipe dream, so you should be realistic with your wish list. Make sure that you can afford what you want to have to prevent misunderstanding later on.
Now that you know what you can afford, you should be flexible when house hunting. Perhaps it’s worth choosing the house that you’d have to drive at least half a mile more for an extra bedroom for your guests or multiple comfort rooms. Don’t limit your options to what is laid in front of you and try to explore out of the box.
Property investment can seem intimidating especially if it’s your first time buying one. The property that you are going to buy will affect the rest of your life’s routine. Hence, follow the above tips above and choose wisely.