Shopping For A New Home

“Buying a home is complicated. Shopping around, doing your homework and taking good advice from property experts is the key to hassle-free home-buying.” 

Here are some of what you need to look for: 

1. Calculate your budget

   Consider what deposit you can raise (from savings or family) and how much you can afford to pay for a monthly mortgage after essential and lifestyle spending. Do not allocate all of your money for the deposit. Hold back around six percent of the purchase price for moving costs. Consider what you can afford to pay each month. How much do you currently spend on rent, for example? Are there monthly payments that you are obliged to make? A lender will do an affordability check before offering a loan, and your monthly income and outgoings will come under scrutiny. So it helps to have an idea of what they are.

2. Shop around for a mortgage

   Visit comparison and information websites before you visit a bank to discuss options. This way you will have an idea of what loans are available. Have a look at your own bank’s mortgage offers. Some target good rates at existing customers, or charge them lower fees.

3. Secure a mortgage offer in principle

   If the initial conversations go well and it sounds as though you might be able to raise a mortgage, you might want to apply for an agreement in principle. Going on to choose a lender and secure a mortgage offer in principle eliminates one of the biggest risks when buying that you spend months finding your dream home only to be refused a mortgage. It can involve a credit check, which will be recorded on your file, so it is unwise to apply for multiple offers.

4. View possible homes

   Phone the estate agent and arrange to view any property that you like the look of. Be open-minded – if a property sounds like it fits the bill, don’t be put off by photographs that might not do it justice.

   When you visit, act like a suspicious surveyor, looking particularly at the structure (for hairline cracks), the walls (for damp), all windows and doorframes (for water penetration) and check for significant unfinished jobs.

   Consider key personal issues: how far is it to work, the school, a market or to the park? Is parking easy? Visit the street at night as well as day and think carefully about the surrounding area – is it improving?

5. Making an offer 

   If you like a place enough to buy it, you need to make an offer to the seller’s estate agent or the seller himself.

   Before you do, compare the price with nearby similar homes, including on a price-per-square-foot basis (property details should include floor plans with measurements).

   In a slow market like today’s it is rare for a 100 percent offer. However, it comes down to what you think it’s worth and how much you can afford.