How much can you afford?
Once you have decided that you are going to buy property, the next step is to decide exactly how much you can realistically afford - which in turn will affect which types of property you should be looking at.
This must not only include the cost of the house itself, but also the other one-off expenses involved in buying a home and moving - which can soon add up.
These costs may include, but are not limited to;
- * Arrangement fee by the lendor
- * Lenders valuation
- * Survey
- * Legal conveyancing fees
- * Stamp duty
- * Local authority and other search fees
- * House hunting fees
- * Removal fees and a contingency fund
To do this you need to work out:
- * The amount you will get from the sale of any current home
- * The amount you can borrow
- * The amount you have available in savings or investments
Once you have done this, work out how much the other one-off costs of buying and moving will add up to.
We would recommend that before looking at properties, you should consult a lender or mortgage adviser to see what your maximum possible loan would be. This will be based on the size of your deposit and how much you earn. Many people will wait until they have found the property before arranging their mortgage, however if you can get an "Agreement in Principal" from your chosen lender it can often convince the vendor that you are a genuine purchaser and put you in a better position to negotiate.