Top Tips Before Entering Into a Financial Decision
Buying a home is a big financial decision. You will need to make sure it is worth the money but this involves a number of factors. You need to make sure it is worth the value it is asked for, that no large amounts of work needs doing and that it is energy efficient – such as the doors and windows. Here are some tips to help make sure your home is energy efficient:
- Hire a real estate agent for opinions: you don’t have to do your search alone. Many buyers will now hire a real estate agent to help them. The benefit of hiring a professional is that you get a professional opinion. They will help you find something within your budget and could even make sure that all the legal paperwork is sorted in office – saving you time too!
The problem with hiring a real estate agent is that they are not necessarily going to be unbiased. They will try to sell the properties they have on their books, which causes problems if they are not exactly what you want. If you do feel pressured, you can walk away and find another professional to help you or start your search yourself.
- Have a professional valuation completed: find someone else to do a real estate appraisal of the home for you. This will help make sure that the property is worth the money being asked for. The majority of sellers will not object to this; if they do, you may want to ask what they are hiding! However, before you hire one, it is better to talk to the seller – or their real estate agent – about this first to organize the best time and day.
- Hire a surveyor: there are problems that an evaluator will miss, which is why you need to hire a surveyor. This is someone who will be able to check the quality of the property and make sure it meets standard regulations. The surveyor will also be able to tell you whether any work will need doing in the immediate future and may be able to offer estimations for the cost.
The benefit of doing this is that you can use this for the basis of your offer. If you find that large amounts of work needs doing then you can look to decrease the offer or have the seller make all the changes to suit you. If you decide that too much work needs doing for the time you have, you can walk away and look for another property.
- Can you afford the monthly repayments: so, you have found the perfect home, it works out financially and you want to put in an offer. Stop right there! You need to determine whether you can actually afford the repayments on the mortgage! This is something that you should have done from the start but many people leave it to the last minute. Take a look at your earnings and consider the amount that you can afford for your monthly repayments – this could be in place of the rent or any extra disposable income you have.
Once you have decided that, you can apply for a loan. If the bank sees a problem with your finances, you will be turned down so make sure there are no financial issues like this.
The best thing you can do is make sure a home is financially worth it. You want to do all the checks possible, including checking the valuation and whether any work needs doing. Once you’ve done that, make sure you can afford the monthly repayments to make sure your application is approved and you don’t lose the home in the future.