Studies have shown that buying a new home is considered by many people to be the most stressful aspect of modern life, ahead even of divorce and bankruptcy. So, if you’re gearing up to purchase a property, you’d be forgiven for feeling a little apprehensive. The good news is there are ways to take some of the hassle and anxiety out of these transactions. Keep reading for four simple but effective tips that should help you keep your stress levels under control when you’re searching for a new home.
1. Avoid the temptation to overstretch your finances
Before you even start looking for a property, it’s important to set a realistic budget. If you spot your dream home before you’ve assessed your finances thoroughly, you might be tempted to overstretch yourself. As well as calculating how much you can afford to borrow in the form of a mortgage, there is a range of other expenses to factor in. For example, you’ll need to take account of stamp duty, solicitors’ fees, mortgage fees, removal expenses and any property repairs or improvements you will need to make.
2. Use expert solicitors to ensure a smooth conveyancing process
In a bid to minimise your expenses, you might consider trying to purchase a property without the expert guidance of a solicitor. However, this could prove to be a costly mistake. These transactions can be complex and confusing, and a range of things can go wrong if you don’t have in-depth knowledge of property law. Also, mortgage lenders often require a conveyancing professional to conduct the purchase. Legal experts will explain each stage of the process to you, ensuring that all documentation is completed. For example, they will check the legal ownership of the home and prepare a deed confirming ownership of you, the buyer. In addition, they will check that any alterations that have been made to the property had the relevant planning permission and they will investigate whether the local authority is planning developments or repairs that will affect the home.
Because of the importance of these legal issues, it’s crucial that your solicitor has detailed knowledge of the local property market. They should also be approachable and responsive. Bear in mind that certain legal firms are particularly strong when it comes to customer service. For example, The Law House ensures that if enquiries are not handled immediately, calls are always returned the same day. When you have an urgent issue to deal with connected to your property purchase, knowing that you will be able to get in touch with your solicitor promptly is really important.
3. Approach a mortgage adviser
You may also benefit from getting expert advice from a mortgage advisor, particularly if this is your first property purchase. It could cost you more upfront, but it will save you time and hassle, and it may lower the amount of your money you pay over the long run. These experts can advise you on a range of things, including the best deals available given your individual circumstances, the overall costs associated with moving and how the type of property you buy will affect your mortgage application.
4. Get a home loan agreed in principle at the start of your search
To avoid the heartache of finding the perfect property only to discover you can’t get a mortgage in time to purchase it, it’s useful to get a mortgage ‘Agreement in Principle’ from a lender. This isn’t a guarantee, but it is a reliable indication that an offer you put in for a property a later stage won’t fall through because you’re unable to borrow the sum you need. It also shows sellers that you’re in a good position and you’re serious about making a purchase.
If you want to take vacations or do other enjoyable things during your retirement then you will need ready cash. If you are on a fixed retirement income then the best way to obtain that cash on a regular basis is to receive monthly payments through a reverse mortgage. When trying to understand reverse mortgage disadvantages and advantages, it is important to know that, unlike with a standard loan, you will not be required to pay any part of the money back right away. However, you will be required to stay in your home on a regular basis. In other words, you cannot take out a reverse mortgage on a vacation home or a property which you rent to other people.
Taking tips like these into account could save you a serious amount of worry and upset when you’re buying a property.