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It doesn’t matter how long it took. You did it! You finally have a healthy cash lump sum to put down on your first ever house purchase. You will soon become a homeowner, and you’ll finally be able to create a space that is all yours. The problem is, you’ve been so busy working hard and being frugal that you haven’t had the time to figure out what happens next. Before you head out to celebrate reaching that milestone figure in your savings account, check out the next steps to get you on the property ladder.
It’s really important you build a good working relationship with your property agent. You need someone on your side that can help you to find the perfect property for you. Find more information on the types of property an agent can help you with so you know what is available. This is your first place, so you’re not likely to be able to stretch too far at this stage. You might not be able to fuss too much about the decor. Still, make it clear what you’re willing to do with regards to DIY and decorating. If you don’t have the skills or the time, don’t OK a search for doer-uppers.
Now you’ve built a rapport with your chosen agency, you should be presented with a few hard truths about how far your money can stretch. Be open to suggestions about viewing properties outside of your preferred neighborhood. Other ways to stretch your budget would be to choose a smaller property than you might have originally requested. Perhaps you can save a little more money for a while longer? Finally, consider those properties that need a little more work. Once you’ve seen a few, you’re ready to finalize your wishlists.
Clarify the number of bedrooms you must have. Confirm the minimum amount of space you can live with. Determine your commuting distance and stick a pin in the map for the outermost limit of your preferred area. Now write down all the must-haves like parking, extra bathroom, or single storey living.
Many property agents can also help you with a mortgage application. By now, your bank accounts should be in a really healthy place. Your spend each month for the last four months should be consistent and minimal. You should have no other outstanding debts, and your employment should be long-term and secure. It’s really hard to get a mortgage for one so consider sharing the obligation and the property with someone else.
There are many other costs aside from the asking price of the property. You are likely to encounter legal fees, admin fees, setup fees, removals costs, agent costs, locksmithing costs, furniture purchases, plumber charges, and taxes. All of those costs usually have to be paid upfront and cannot be added to your mortgage. As it takes so long for completion and receiving the keys, you might be able to save up a little more. Of course, the mortgage company will be checking you can afford all this too! Are you ready to buy your first home?