Introduction:
‘Buying a new house’ will be the dream for many. Especially during the New Year, it may be the aim for many. People in the UK have faced a lot of sluggish moments in the real estate industry during the year 2018. ‘Brexit’ and its aftermath may be said to be the cause for the same. This year things have started to turn for the better and the real estate agents London also have started to see a ray of hope in terms of the buying, selling, and other related activities in the housing market. Since people have started thinking of buying a new house in London this year, they should also consider various aspects pertaining to their destination.
One of the main aspects pertaining to this housing market is nothing but financial aspects. One needs to be financially sound to lay hands on buying a new house. There are many things which come to the limelight while buying it.
In this article, we are throwing light on the three most important financial things to check before you step into the target destination.
- 1.Pre-determine how much you can afford for buying a new house
Lenders play a vital role in making the aspirants to achieve their dream. According to them, people should look for a home which costs no more than three to five times of their annual household income. If they can make some down payment, say 20 or 30%, then they will have a decent amount of other debt to look into.
To proceed further, one should have a clear picture of their financial situation. To be more precise, they can always seek the help of Affordability calculator before taking a huge risk of buying a new house.
- 2.Acquiring Pre-qualified and also a Pre-approved approval for your Mortgage
As you start looking for a new home, financial aspects will be the one which nags you often. You should be crystal clear in terms of spending. Without knowing how much you can afford for buying a new house, further proceedings will be an issue. The best option is to get it prequalified for a mortgage at any cost.
To get prequalified, you just need to provide some financial information to your mortgage bankers, such as your income and the amount of savings and investments you currently have. Information provided will be reviewed by your lender and he will let you know how much can be lent for your property. Now, you will get to know the price range of homes which should be looked at. Later, you can get it pre-approved for the purpose of credit. In this process you would be providing your financial documents (W-2 statements, paycheck stubs, bank account statements, etc.) so that your lender can verify your financial status and credit with ease.
- 3.Select your Loan by Working with your Mortgage Banker
Lenders will lure you with various competitively priced loan programs. It is in your hands to select the best one as per your affordability. It is always advisable to get the needed advice from an experienced and also a responsive mortgage banker. They will assist you with all kind of nuances to follow while buying a new house.
Choosing a mortgage depends on the priorities. So, finding the former according to your affordability really matters. Some prefer to keep their monthly payments low while others vice-versa. While some of the homebuyers will pick a loan according to their knowledge. They will have a plan of moving just a few years.
Whatever be their plan, getting advice from mortgage banker should be there always.
Conclusion:
Buying a new house is not a child’s play. It involves various prerequisites. The most important one is the financial strategy. One should think of all the above-mentioned aspects before they plan to buy a new house for a peaceful and contented life in their new property.
