• First Time Buyers Guide

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    Purchasing a home is not only a big decision but a big price. It is important to consider what you can afford and your options available if supplements are needed. As you begin to search for the perfect home, it is important to answer the following questions:

    1. How much house can I afford?

    Many people find mortgage calculators a fast, easy, and convenient way to find out how much house they can afford. Many real estate sites have mortgage calculators online that will give you an idea of what you afford without stretching your budget to its limits. If you prefer to do a rough calculation yourself, then the affordability formula is recommended. The formula is calculated by multiplying your annual income by 2 to 3 (2 being the most conservative choice). However, as the formula is a rough estimation, it fails to take into consideration your savings, down payment affordability, and loan approval needs.

     

    2. Am I entitled to any tax reductions?

    That will depend on circumstances.  If you’re on a low income, you can be given a helping hand to pay your council tax which is known as a Council Tax Reduction.

    For those who are considering loan options:

    •  What is my credit score?

    In order to be approved for a loan, you need to calculate your credit score. The following sites will calculate your rating:

    https://www.experian.co.uk

    https://www.equifax.co.uk

    https://www.clearscore.com/

    •  Based on my credit score, will I be pre-approved for a loan?

    As each bank’s criteria differ, it is recommended that you discuss this with your bank/lender for further details.

    Other considerations:

    1. What are my housing preferences (what am I looking for in a home)?

    The Internet provides you with many sites to search for homes within a particular area and with specific features. After formulating a rough draft of preferences (I.e. price range, number of bedrooms, square footage, etc.), you can contact an agent with your housing criteria, browse the web to find properties that meet your specific matches & your preferences, with seller offerings it allows you to directly  communicate and transact with the seller for free.

    2. Do I need an agent?

    An agent allows you to directly transact with the buyer and seller. However, as a first-time buyer, you may find an agent useful for the negotiation stages, or closing procedure, etc.

    While there are many things to consider before purchasing a home, the above answers some of the most important questions you might have as a first-time buyer. It is therefore recommended that you make sure you can afford your prospective mortgage payment, take into consideration other expenses, and use the internet in assisting you to find the perfect home.

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