Agree your budget
A full appreciation of your financial position is essential before you start looking for your new home
Before you begin your search, it's a good idea to do your financial homework.
Remember before you make an offer, your Lender should confirm in principle that it is willing to lend the amount you need. Please note that an Agreement in Principle or Decision in Principle from a Lender is not a guarantee that a mortgage offer will be made to you.
You need to decide how much can you afford to borrow, how much equity you want to put in and how much money you want to hold back for decoration, furnishing your home and your rainy day and household emergencies funds?
We can put you in touch with an independent mortgage broker to help you to work out your net monthly income, your current outgoings and disposable income, and they'll also factor in your potential legal and property expenses for the property purchase and the outgoings when you become an owner e.g. mortgage payments, utilities, council tax, factors fees etc.
They will ensure that you are not over-stretched financially by establishing your financial tolerances before you make an offer e.g. your price bracket detailing your minimum, ideal and maximum purchase price and your budget for property expenses and first year living and fixture and fittings costs. Please call us and we will make the necessary arrangements.
Buy or sell first?
There is not a right or wrong answer to this question. Circumstances change with every transaction. The market changes from month to month and your existing property may or may not sell quickly. In the current market however, unless you are a first time buyer or in a position to finance your purchase without recourse to the sale proceeds of your existing property, we would strongly advise that you sell first.
This means that you have to consider what would happen if your existing property sold quickly. If you haven't already identified a property to buy then where would you stay in the meantime? Could you move in with relatives or friends or would you choose to move into rented accommodation for a short period?
At Hunters Residential we will happily sit down with you to discuss the pros and cons of buying first. We will not be afraid to tell you what you may not want to hear - our priority is to ensure that you are given the best advice to avoid any future stress.
One obvious step would be to invite one of our valuers out to look at your existing property. He or she will give you a realistic indication of what your property is likely to sell for and also discuss our marketing strategy with you.
Click here to arrange a market appraisal
