If you’re one of the five million people in the UK who aspire to buy their own home, you might be wondering what the process is like. A lot of people think it’s just a case of viewing a property, saying yes, and getting the keys.I can tell you from first hand experience, it can be a lot more complex and confusing than that.
There’s deposits, credit scores, and all sorts of other aspects to take into account. Whether you’re in a position to buy right away or want to get to grips with what’s involved before you take the leap, this guide should help.
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Have you saved a deposit?
The first thing that you should do is start saving a deposit for your house. This is, by far, the trickiest part of becoming a homeowner – saving for a deposit. If you have savings, that’s a good start. However, you may still need to save up the extra money that you need to ensure that you have at least ten percent of the price of the property that you want to buy. To make saving easier, budgeting is a must. Aim to save a certain amount each month, to ensure that you’re able to save up what you need.
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Do you have a good credit score?
If you dream of owning your own home, a good credit score is a must. This is because if you want to get a mortgage – something that most buyers need, your credit score needs to be high enough for you to get accepted. If it’s not, then, your mortgage application will be declined. Or, if you are offered a mortgage, the interest rates will be seriously high. That’s the thing about poor credit scores; they take the cost of being a homeowner up.
Can you get a mortgage?
Even if you’ve got a deposit and a good credit score that doesn’t guarantee that you’ll be approved for a mortgage. There’s more to mortgage applications than that, and it’s important to understand that. The job that you do can have an impact on your ability to get a mortgage, as can any past financial problems you might have had.
For example, you’re self-employed, your chances of getting a mortgage, are much lower than someone who has a full-time job. Even if you earn more than them, it can still impact your chances of getting your mortgage application approved. If you want to learn more about this, research expert property advice and support online to get an idea of what it’s best to do.
Things can go wrong
What it’s important to realise is that even after you’ve got your mortgage sorted, things can still go wrong. The chances are slim, but sometimes there can be issues with the sale. For instance, sometimes the property survey can come back with problems you didn’t realise were present. Or, in some cases, the sellers can pull out at the last minute. Fortunately, these types of issues do tend to be rare. However, it’s still best to be prepared for them.
So there you have it, everything that you need to know about the process of buying a house and what could go wrong.[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]