Successfully putting yourself in the position to buy your own home is the aspiration of many people. Tying your name to the mortgage of a property is likely to be the biggest financial commitment you’ll ever make, and it’ll have an impact on your financial situation until the day it’s finally paid off. The idea of owning a home may seem exciting - and in many respects, it certainly is - but it’s still extremely important to make sure you take that step when you are in the perfect position to do so.
Finding your perfect home and navigating the home-buying process can often be stressful and complicated, so you should consider several aspects from both a financial perspective and emotional standpoint before deciding that now is the right time for you to purchase a home.
Here are a few things we believe you should consider before coming to a decision:
Buying a home is a huge financial commitment, with deposit funds, mortgage costs, solicitor fees, insurance premiums, utility bills and ongoing maintenance costs. This means purchasing a residential home to live in for the short term rarely makes financial sense. It can take several years to build up notable equity, and even then, it’s market dependent, so buying a home to live in typically makes the most sense when you’re looking to settle for a decent amount of time.
Some buyers are lucky enough to be able to buy a property outright with cash, but for most a mortgage is required. Before filling in mortgage application forms, you should focus on minimising your expenses and paying off any debts to create as much expendable income as possible. This will put you in a much better position to obtain a mortgage, as lenders won’t want to see you riddled with high expenses or outstanding loans and will instead want to see evidence that you can manage your finances.
Get a copy of your credit report so that you can see what lenders will see when reviewing your application. This will highlight areas that you need to address to boost your credit rating, but this takes a little time so the earlier you act the better.
Lenders like to ensure that those applying for a mortgage with them have been in stable employment for a notable length of time, typically at least six months. If you plan to change jobs, it’d be best to either change your job and then wait a while until you settle in before making the mortgage application or obtain your mortgage and then look to switch employment afterwards.
When buying a home, we’re sure you’re aware that you’ll need to put down a deposit. The more you can save towards the deposit the better, as larger deposits will give you better mortgage products with kinder interest rates - meaning your monthly mortgage payments will be less.
You’ll also need to consider any home improvement work that you’ll want to carry out once you’ve moved in, or furniture and appliances that you need to buy as these costs will need to be factored into your savings as well. As a homeowner, repairs and maintenance become your responsibility, so it’s a good idea to make sure you’re financially prepared with a contingency fund in place to deal with any unexpected costs when they happen.
Timing is important, especially if you’re currently renting. You don’t want to have another six months left in the home you’re renting when the sale is about to complete on the one you’re buying, but you don’t want to rush things either if you only have a short amount of time to find the right home. Buying a home deserves great consideration, and you want to ensure you’re in the best position to make the right decisions and to allow the process to run as smoothly as possible.Do you need help and advice with buying a home? Whether you’re a first-time buyer or simply looking for somewhere new in Cardiff, our helpful team are here to offer their expertise. Call today on 02920 668585, e-mail email@example.com or pop into one of our three Cardiff branches.