This is a collaborative post.
Nowadays, increasing numbers of people are renting rather than buying. Sometimes, renting suits people better. If you’re not sure where you want to settle down or think you may make major moves between cities or even countries for any reason, renting can prove perfect for you. It provides you with flexibility and freedom. However, if you know you want to stay in a set place, generally speaking, buying is better. This way, you’re paying your own mortgage, rather than paying your landlord’s mortgage on their behalf or providing them with an income.
Now, buying can be hard. House pricing has skyrocketed due to landlords buying up second, third, fourth or more homes. On top of this, the rate of pay seems to be stagnant. But if you are considering buying, here are some steps that you need to take into consideration.
Saving a deposit is perhaps the hardest part of getting a house. Generally speaking, you’ll be looking at putting down over 10% of the overall property price you’re looking at – though smaller and even zero percentage mortgages are sometimes available. Make a budget and put as much of your disposable income as possible into a savings account. Allow yourself some treats and luxuries – go out once in a while, replace things that need replacing, etc. But try to save a fair amount each month around this. Your savings will slowly begin to mount up – especially if you find a good savings account with a good added interest rate! You can find tips for saving up for a home here.
Finding the Right Estate Agent
Once you’ve got your deposit together and you’re ready to actually put a deposit down on a place, it’s time to start house hunting. Estate agents can help you to achieve this. With a little information in regards to what you’re looking for in a property, such as what area you’re looking at, how many rooms you want and whether there are any specific features you’d like. They can also take you for viewings once you’ve whittled down your options.
Finding the Right Mortgage Lender
Once you’ve settled on a house, you’ll need to sort out the money for it. Of course, very few people pay for a house outright. Instead, you’re likely to have to find a mortgage lender who will give you a loan to cover the cost of the house. You’ll then pay them back in instalments over a matter of years. You’re going to want to find the best deal possible. Low interest is the aim. Shop around and compare mortgage lenders or “brokers” and find who can offer you the best rates, so you have to pay a smaller amount back in the long run.
You’re bound to want to take your time over this process. After all, buying a house is likely to be the biggest investment you make in your life. But hopefully, the above steps will outline some of the most important steps you’ll make along the journey!