The financial side of buying a home is quite clear and common sense – you need money to buy, or if you’re taking out a big loan in the form of a mortgage (no matter the terms) your credit has to be good enough that lenders trust you.
As such, if you’re hoping to house hunt, you may go straight to credit scores and how much cash you’ve managed to save. That’s obviously a good start, and no doubt the foundation of it all. But they’re not the full picture.
What a lot of house hunters don’t realise until they’re deep into it, is that a smooth buying process can also be defined by a few smaller, quieter financial details that don’t seem all that urgent until they really, really are.
As such, if you’re hoping to feel prepared and confident when it’s time to start planning your move today, we hope this post can help you prepare from all angles
Have A Clear Idea Of Monthly Outgoings Post-Move
You’ve no doubt focused on the deposit and the mortgage approval, but perhaps you did to the point you forgot about how your monthly finances will look after the move. But this is the part that makes everything feel real.
You’ll want to sit down and run through not just your expected mortgage payment, but also utilities, council tax, any monthly fees if the property’s leasehold, commuting costs if your location changes, and home maintenance depending on the type of place you’re going for. If you’re moving from a flat into a detached home, that heating bill alone might feel very different by winter. We’re not suggesting you should begin scaring yourself out of a purchase, it’s just better to know exactly where you’ll stand before you commit.
Get Your Documents Organised & Ready To Go
It sounds dull, and it is, but this is the stuff that slows people down when they finally find somewhere they love and then have to scramble for paperwork. Lenders and solicitors will ask for proof of income, identification, bank statements going back a few months, and evidence of your deposit source.
If any of those bring up red flags, or you’ve got to request old documents from slow-moving banks or your workplace, it’s going to take time. Someone else might have sniped in with a better offer in that time. Having everything clean and easy to present not only gets the process going faster but gives off the right impression when dealing with agents or mortgage brokers, and they may be more interested in working with you or coming to a better arrangement when that’s possible.
Decide What You’re Comfortable Spending Above The Asking Price
Everyone talks about budgeting and what they can afford, but that number can feel a bit vague until you’ve made a few decisions about your priorities. Do you want to leave enough wiggle room for furniture, or are you willing to stretch further if the right place shows up? If very much needed, could relatives provide you with a loan should you find something perfect and that might help them too (such as living nearer to them?)
You’ll likely ask yourself this at some point, but they’re tough calls to make under pressure, so it’s good to iron out these questions ahead of time. If you know your parents can lend you ten grand just so you can finally secure the house you fell in love with, that’s nice to know.
With this advice, we hope you can plan ahead and manage your finances before house buying.
