If you’ve recently chosen to purchase your first home, Likemoney is here to help you through each step of this energising endeavour! Purchasing another house is one of the greatest investments you’ll ever make, and most likely you’ll have numerous inquiries in regards to the procedure. Likemoney is here to fill in the gaps by giving the answers and the important advice that you are looking for. This article is here to teach you about first-time mortgages and new home loan solutions.
Getting ready to purchase your new home:
Before you set your sights on buying the home you had always wanted, it is vital to establish up whether you are prepared to make such a significant, ongoing financial commitment – at the end of the day, is your income steady and adequate to support a first-time bond?
If you are secure in your job and earn a regular monthly salary, you’ll have a fairly good idea of whether or not you can afford to purchase a home. In any case, if you are self-employed, your salary can be unpredictable making it harder to know for certain whether you are in a position to buy
Other important things to keep in mind are the costs and fees associated with the purchase of a home. You will need to have money to place down as a deposit, generally 20% of the value of the home. Furthermore, you will also need to consider moving costs, homeowners insurance and rates on your property. To ensure that you can afford the purchase, it is essential to calculate all your monthly expenses and those involved in buying a new home. As a general rule, your bond repayments, together with taxes and property insurance, shouldn’t exceed 25% to 30% of your gross income.
Important factors to consider when buying your new home:
One of the most crucial factors that you will need to consider when purchasing your first home is the type of house you actually need. There is no point in buying a small studio apartment if you plan on having kids soon. You need to take into account your current and medium term needs.
The location is another factor to take into consideration. Is the home centrally located, or at least within manageable distance of work, grocery stores, doctors, schools and pharmacies? Furthermore is the area safe and secure?
Once you’ve decided which area you’d like to live in and have a rough idea of the type of home you want to buy, you’re ready to begin house-hunting. Although the process of finding a home is reputed to be a lengthy one, don’t be surprised if your ideal home takes only weeks to find.
Once you have considered all these aspects, you are ready to start house hunting. When you have found a house and are looking to take out a home loan. Look no further than Likemoney. Use Likemoney’s affordability & payment calculators to calculate what home loan you can take out. Also, browse through home loans providers to find the best deals.