Pros & Cons of Buying a House
There are advantages and disadvantages to being a home buyer rather than a tenant – if you buy, then you have a pile of bricks and mortar you can call your own, but if for some reason you can’t pay the mortgage you can find yourself in deep trouble. You can decorate your new home however you want, but you will bear all the maintenance costs – if you’re renting and the roof falls in, your landlord has to pay. If you’re the home buyer, you have to find the money to fix it.
Before You Look For a House
So you’ve decided you still want to be a home owner. The first thing you need to do is sort out your credit score. Get a copy and go through it – if there’s anything on there that shouldn’t be, talk to the bank and whoever reported it. Get it sorted, because if you don’t you might well be turned down for a mortgage.
Next, work out what you can afford – and have a look at the ‘costs’ section below to give you an idea of what you’ll be paying out on top of the house. Be realistic about what you can afford, and if that dream house is out of your range for now, decide whether you want to wait or go for something a bit cheaper. Estimate the mortgage repayments – the FSA has a handy calculator.
The Costs Involved
This is the scary part, and the bit you will need to sit down with your calculator for. You will need to cover, in addition to the cost of the mortgage: the deposit, Stamp Duty Land Tax, surveyor’s fees, lender’s fees and charges, Land Registry fees, conveyancer/solicitor’s fees, and the cost of the guys with the van.
Once you’ve found a house don’t buy it just because you love it, no matter how tempting it is. A smart home buyer will sit down and calculate all the house’s pros and cons before they make an offer. Is it close to schools and amenities, will it hold its value or appreciate, does it need work doing and if so how much?
There are so many factors involved in whether or not a house is right for you that it would be impossible to list them all here. Sit down and really think hard about what you want from this house. What are you willing to compromise on? What can you simply not do without?
If You’re Selling Your Home First
If you’re selling a home before you buy your new one, SureOffer do free offers on properties and a quick cash sale, which can free you up to buy your new home and greatly reduce your mortgage, if not eliminate it entirely.