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Buying home important instructions

So, you're about to take that first step up the property ladder and buy your first home. It's an exciting time - but probably a little confusing, too. There's so much to think about, and when you're a first-timer on the property scene, it can be difficult to know what to tackle first.

First home financing

Before you even think about starting the search for your ideal home, get your finance in place. Very few of us these days can afford to buy a home outright, so unless you happen to have inherited a fortune, or won the lottery, you're going to need a mortgage. There are various different types of mortgages available: fixed interest, variable rate, 25 year duration, 35 year duration... If you're unsure which is best for you, speak to an independent financial adviser, who will be able to guide you through the maze.

The amount your mortgage lender is willing to lend you will depend on your income, debts, and savings, so it's important to find out just how much you have to spend before you set your heart on a home that turns out to be out of your league. Remember, too, that not all lenders will loan you the full amount of your property - some will give you only a percentage of the price, so you may also need to save up for a deposit.

Finding your first home

You don't need us to tell you where to go looking for your first home. Real estate agents, local newspapers and the internet all provide happy hunting grounds for prospective home buyers - or you can do it the old fashioned way and just go for a drive in the area you're looking to buy in, keeping an eye out for 'For Sale' boards. An increasingly large number of home owners are also now choosing to sell their homes themselves, rather than relying on estate agents, so don't forget to check out 'for sale by owner' sites.

Surveys

Once you've found the home of your dreams it can be tempting to place an offer on it right away, so that you can get on with the fun part of moving - buying furniture, choosing decor etc. Before you do any of this, however, you'll need to have the house surveyed, to make sure that it meets building standards, and that there aren't any nasty (and expensive) surprises hidden in the brickwork. You should, by now, have appointed a solicitor to oversee the legalities of your sake, and they will normally be able to arrange a survey for you.

Making an offer

Once your survey is complete and satisfactory, its time to make an offer. Your solicitor will be able to do this for you, or, if you're buying a house that's for sale by owner, you can make an informal offer verbally to your seller. However your offer is made and accepted, however, the next step is to get the details down on paper, in the form of an official deed of sale, which clearly states how much you will pay, what is included in the sale (i.e. white goods, items of furniture, outbuildings etc.), and when you can move in.

Money management

Establishing credit is very important especially when you are looking to purchase a large investment like a house. Your credit reports reflects how you are doing with money management. After marriage you will need to study your spouses and your credit report and your financial history so you are familiar with it before applying for a mortgage. These reports will be needed for the mortgage approval process in finding out the interest rate and other loan terms.

Familiarize yourself with the mortgage industry

Do your research. Money management isn’t only about managing your money; you need to be confident in who is handling your money as well. Finding the right loan and lender is extremely important to your home buying success.

Choose the lender that is best for your needs but be sure to understand the loan process as much as you can before talking to a lender so you don’t feel completely lost.

Get pre-approved for a mortgage

Once you talk with a lender, you should be given an estimate of how much you can afford for a house.

Being pre approved can help you in a variety of ways. So if a home seller gets two offers, one being yours with a pre approved letter from your bank saying you have been approved for the amount offered, and then there is the other person with no letter, your chances of getting the house are much better.

Home buying search tools

1. Consider houses that others may overlook

2. Get out there to see what’s out there

3. Look into public versions of multiple listing service web sites

4. Search for real estate agent web sites

5. Browse real estate search engines and networks

6. Find for sale by owner properties

7. Look at magazine and newspapers in print

8. Find foreclosed homes

House inspections and other tests

Some states allow home inspections before the final contract is signed where as in other states inspections take place after the contract is signed. No matter when you have to do them, it's very important to decide which inspections and tests you want done.

Discuss with your real estate agent or if you don’t have one, then an advisor to find out when inspections should happen and if additional types of testing are needed for a specific area.

By Amber McNaught, Kelly Kennedy