Easy Ways To Decrease Stress When Buying A Home
Buying a house is very important in any person’s life. People have dreams and requirements. The belonging, security, privacy, and identity provided by the home is what
makes it so special. It works as an anchor of our existence. However, buying a
house is always a cumbersome process as it is mostly the biggest financial
investment of anyone’s life. There are so many steps involved in buying a house and
so many possibilities of something going wrong. All these possibilities lead to stress
and apprehensions. However, there are ways to reduce this unwanted stress.
Decide your Needs
If you are thinking about buying a house, the first step would be to finalize what you
are looking for. You need to have a clear idea of your needs and expectations.
Everyone has some basic ideas about the kind of locality they want to live in,
whether they need a house, condo, or a flat, the number of bedrooms, desired square
footage, floor plan, etc. You might want to consider the distance from the nearest
shopping area, school (if you have young kids), and your workplace. Checking the
neighborhood, age of the property, as well as maintenance required, might be a
good idea too. Providing this basic information to your real estate agent will make
it much easier to narrow down properties for you.
Getting a list made of all your needs and expectations is a great idea but you also
need to be adaptable. There is always a possibility that you might not find the perfect
property for yourself. You need to be a bit adaptable. However, you can always buy
the property that fulfills most of your needs and then invest in remodeling it as per
your expectations. But not everyone can afford that. You, therefore, need to make
two separate lists: one should be of your needs, that you definitely want in your
house and second, what you want. You must never ignore what you need as it’s a
big investment and most people buy a home only once in their lifetime. Flexibility
and prioritizing your needs and wants will make it much easier to find the best
possible property for you.
Trust on Your Real Estate Agent
We all do our share of research before buying a house. We dwell on all the
details. Some of us put a lot of effort in, to educate ourselves as much as we can.
Sometimes, it leads to overconfidence. We start believing that we have become the
perfectionist and don’t need any assistance and stop listening to our real estate
agent. Unless a person has a background in real estate, the chances that you know
every single bit related to this field are very low. Therefore, the need for a person who
knows this area well and can guide while making this huge investment arises. It is
very important to listen and have trust in your real estate agent. You explain your expectations from a property and then let them do their job. An agent only gets
paid when the sale is closed, so they use all their knowledge and experience along
with their hard work to find the best property for you.
Finding The Best Contractor Mortgage
Once, you have narrowed down your choices, you need to resolve the financial part.
You might want to consider taking a home loan but getting it approved would depend
on your income and credit. You might want to consider getting pre-approved for a
mortgage before you start bidding on houses. It would be heartbreaking to know that
you are ineligible for financing after falling in love with a property. Also, many sellers
and agents find buyers having pre-approved mortgages more reliable and are more
inclined to go for them. To get this pre-approval, you need to make sure that all your
bills are paid on time and your credit is clean. This will make your path easier and
will qualify you for the best possible interest rate. You will also need to keep a record
of all your bank statements and recent income.
Having a contractor mortgage makes it easy to find you the best lender, based on
your income and paying capacity. There are various contractor mortgages in
London who have expertise and experience of many years and can help you get
the mortgage. Having a steady income makes it easier to get a mortgage but it’s
not impossible to find the lender even if you are self-employed. A good contractor mortgage can foresee the kind of obstacles you may face in the future and can prepare
Buying a house is probably the most expensive affair of your life. Hence, you need to
be very careful and make sure that you understand the cost of the property and also
the additional expenses involved. There are expenses related to the mortgage that
needs to be considered like home inspections, home appraisals, and earnest money
deposits. You will be required to provide some down payment to your lender which
can be anything between 3.5% to 5% based on the type of your loan. You also need
to consider the closing cost which includes a title search and insurance, origination
fees, underwriting fees, recording fees, discount points, and credit report fees. All
these expenses will cost somewhere between 3% to 5%.
Though there are many loopholes and the process might seem cumbersome, buying
a house is like fulfilling your dream. By educating yourself beforehand and making
the right decisions, you can actually get through this journey without losing your
Paying down consumer debt also can assist you to qualify for a mortgage since lenders
think about your debt-to-income ratio when deciding whether or to not approve your
application. However, while debt repayment is vital, you shouldn’t sacrifice building a
financial cushion in favour of it. Buying a home is expensive, and you’re getting to
need money within the bank for moving costs, mortgage fees, repairs, furniture, and
other related expenses.
Ashley Slade is a Business and finance Expert and Writer at AWS Mortgages in London. We offer our
clients, with diverse income streams and resources, a tailored financial solution.
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