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[S987]Steps To Buying A House

by T & R Direct, T &

1.Money

The first question you need to ask yourself is how much can you afford. You will need to investigate mortgages and find the right kind to suit you. Shop around and ask for advice.

The majority of mortgages are based on two and a half times your salary and you should take an affordability test to make sure you can cope with the payments. Remember, it isn't just the mortgage that costs. Other finances to consider are:

• Survey fees
• Usually you will be expected to pay a minimum of 5% deposit on the property
• Stamp duty and land tax. This is calculated on the purchase price, and is only payable on properties over £125,000
• Land registry fee
• Local authority search
• Any fees charged by the mortgage lender or broker
• Solicitor's fees
• Removal expenses
• All the final bills outstanding from your previous home
• Any finance needed for refurbishment or refurnishing your new property

The maintenance costs of the property need to be accounted for in your budget too, including:

• Utility bills - including heating, water, gas and telephone
• Council tax
• House insurance, including life, buildings and contents insurance

2.Finding a property

You can find a property by going through:

•Estate agents
•Local paper property pages
•Keeping an eye out in your desired area for ‘For Sale' notices or new build developments

3.Choosing your property

Always inspect a property at least two or three times before making an offer. It's a good idea to visit an area at different times of the day and night to get a full perspective – look out for things like noise pollution or whether you feel safe at night.

4.Making your offer

Once you have decided a property is for you, it is normal to put in an offer slightly below the asking price. Always try and get the best deal you can. There is always a risk but, you can always up your offer if it is rejected.

5.The offer is accepted.

You will then need to fix up a survey and find a solicitor to do the legal work for you. Your offer will be subject to contract, so you can still pull out if anything wrong comes up on the survey.

6.Survey

The survey considers the value of the property and examines the structure of the building, identifying any existing or potential problems. If problems are reported, you will have to consider whether you still want to go ahead with the purchase or want to negotiate further with the seller about the price.

Your solicitor will than handle stamp duty, search fees and land registration fees on your behalf.

7.Contracts

It can take up to two months from having your offer accepted to exchanging contracts. Once the conveyance work is complete, eventually you will sign the contract.

8.Insuring the property

Your mortgage lender will help you with insuring your property or you can look independently if you want to shop around for a cheaper deal. All buildings insurance should be arranged from the date of exchange, once the contracts are exchanged, you are responsible for the property.

Completion! Completion is the agreed date to move in your property. The seller hands over the keys and you are the proud owner of your new home!

The first thing many people think of when they consider buying a house is to rush down to the latest subdivision and sign on the dotted line. That may be a good idea, and again there may be other possibilities that should be investigated. The needs of all families are not the same. Some people are better off in an apartment; others get along better in a house, but find it more to their liking to rent. Many people find ready-built houses in a tract or subdivision the exact choice to meet their needs.

Some people are content to buy older houses that require extensive repairing and major remodelling to be liveable, if they can get them cheaply enough, whereas other people find it more satisfactory to buy old houses that are in pretty fair condition needing only minor repairs and painting. In either case watch your step.

If all houses look about the same to you, if individuality is not a prime consideration in your thinking about houses, if you can be satisfied with a house in a new subdivision where the contractor is building them by the dozens or hundreds, you will probably get a better value there than anywhere else.

You should get more for the money with less trouble over financing and other bothersome details. The house is complete. All you need to do is to pay $100 a month for the rest of your life. You would pay the same for rent anyway, meanwhile accumulating a large bundle of worthless rent receipts. If you buy, you are gradually building up an equity in the house by your payments. Part of the payment goes for interest, taxes, and insurance, the rest for payment on the cost of the house.

The houses offered for sale from one subdivision to another vary greatly in quality. But still, the best values in houses are often found in subdivision or tract houses where companies build houses to sell on a mass production basis. These builders have worked out the most economical ways of building, and, we hope, pass on part of these savings to the buyers.

Since they have the financing already worked out, all you need is a small down payment. You have the advantage of living in a community where the houses are all of the same age and general quality of design and construction, even if that level is not of the highest.

If a tract house that suits you is near your work, or near where you want to live, it may be the best solution for you. As you shop around trying to find the best house offered for the money, don't be taken in too readily by flashy advertising, high-pressure salesmanship, and low down payments.

Good buys can sometimes be found with small operators who build to sell, but only a few houses a year. There is more variation in quality among small builders, and it is well to check thoroughly, as some small builders are away above average, and some far below. You might get a very good buy from a small builder.

Buying a house in a subdivision may get you just what you want.

Article Source : Pg. 46

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Both T & R Direct & Russell R Freeman are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

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Russell R Freeman has sinced written about articles on various topics from Home Improvement, Home Management and Home Improvement. Thinking About