Building Blocks

Home Buying 101

If you are considering buying a home, chances are you do not know what the process is for buying a home in the U K. It is easy to think that it will be difficult and fraught with red tape and paper but it is not. Here is a brief review of the steps you will need to take.

First you will have to take into consideration just what can you afford. This will largely be dependent on your total earnings. Most mortgage lenders tend to offer loans in amounts that are up to three times what you earn annually. Some lenders will even lend you close to five times what you earn.

You also have to add the amount of money you have saved as this may help to lessen the amount you may need to borrow. Also keep in mind that there are usually closing costs associated with every house purchase.

You then have to choose the type of mortgage that best suits you. Most lenders will have a lot of mortgages all with differing requirements and features. To choose which is best you need to decide if you prefer a repayment mortgage or do you want to go with an interest only one. Repayment mortgages include fixed rate, discount, and cash back mortgages. With interest only mortgages you will be paying just the interest only but the principal will remain and will still have to be repaid at the end of the term.

You should then start looking for a home to buy. You can use real estate agents to help you with this and you can also check out property websites and listings offline. Your local newspapers will likely have a listing of properties for sale. There are also property auctions that are held where you may be able to find great deals.

When you find a property you like you should make an offer. Once you offer has been accepted you should then quickly get the mortgage in place, and employ a solicitor to handle the legal aspects of the purchase. Pease keep abreast of this part of the process as some solicitors tend to be slow in finalizing the process.