Buying Your First Home
Buying your first house can be very exciting. Maybe you’re going to live together with your spouse or partner or leave your parental home for the first time. Perhaps you’ve already been checking out different properties in the neighborhood where you want to live, or you’re just checking the internet for some more information about mortgages. In this article, we are going to explain everything you need to know about buying your first house or soon to be called home.
How about financing?
Under current regulations, it’s possible to borrow up to 100% of the value of your home. Apart from the sales price of the property, a few other (necessary) costs will incur during the process. These costs cannot be financed by a loan. Here’s a short overview of extra expenses:
– Consulting fees
– Transfer costs
– Taxation fees
– Notary fees
– Real Estate broker fees
Everything about a mortgage
Buying your first house is one of the most critical moments of your life. Therefore it’s not more than sensible to do your research beforehand. What terms and conditions are attached to a mortgage, what types of mortgages are available and, apart from a decent interest rate, are there any other essential factors while signing a mortgage contract? All these questions might have already been going on in your mind.
Signing a mortgage – the process
From the moment you see the property for the first time up to receiving the keys. After your orientation, which could be online, offline, or even both, the most exciting phase of the process begins. You’ll have to make your first offer. But how do you know what a correct offer is? And what should you take into consideration while making such an offer?
Maybe you’re now renting a place or still living at home with your parents. It could be the case you’re wondering whether to keep renting or buying a house. Interest rates are quite low at the moment, so buying a home could be a good investment right now. It’s good to research the pros and cons of buying versus renting first.
Another interesting question would be for either a new home or property or an existing one. Like we outlined before, you can borrow up to 100% of the costs of the house initially, but the additional fees cannot be financed. Are you going to ask friends or family for some money, or do you have enough savings on your bank account? All these questions should be answered before eventually buying a house.
Also, do you have any debts still? Maybe you have an unpaid car or student loan that you still have to repay. All these factors play a significant role, especially at the orientation consultation with your local bank or online loan calculator.
Maybe it’s a smart move to consult a mortgage consultancy agent or company first. You tell them your exact situation, and they might have something that exactly fits your needs and budget.
Once you know what kind of house you want to live in and what you can maximally borrow, it’s time to go house hunting. You can do this either online or offline, depending on your situation. Eventually, you’ll have to go to one or multiple viewing appointments.
Appointing a real estate broker increases your chances of finding the right home you want. Do note, however, that most real estate brokers charge hefty fees and that your bank cannot finance these fees in most cases.
Once you finally found the home you want, you have to do a value assessment. What kind of offer are you or your real estate broker going to do? Not too high, of course, but also not to low, because the current owner might not take you seriously. Your real estate broker can assist you in making the right bid.
Signing a provisional purchase contract
Once you made the right deal with the seller and he/she or the company selling the property accepted it, it’s time to sign a temporary purchase contract. Note the words ‘provisional,’ which means that you could easily still back out of the purchase agreement. However, to do this in the right way, you have to include specific terms in the contract. Your real estate broker can help you with this.
Getting a mortgage loan
Now it’s time to get very serious, and you should consult your mortgage loan provider and tell them about your situation. After the consultation, it should be obvious how much you can and want to borrow and what type of mortgage you would prefer. Some banks nowadays offer this kind of consultation conversations online by video chat. This is quite handy, and you don’t have top dress fancy and be in lines at your local bank branch for a while anymore. Note that most of the time, it’s handy not only to get a mortgage but also to ensure your new home against any damage or theft. Don’t overinsure your new home, though; banks will try to sell you loads of unnecessary loans.
Visiting a notary office
Once you arranged your mortgage, it’s time to visit a notary office and sign the mortgage deed. Once that’s done, your new home finally really becomes yours, and you will then receive the keys to your new place.
Now that you found and got your dream house, a lot of things are going to change shortly regarding your situation. Remember always to pay off your mortgage on time.
Last but not least, remember to claim as many costs you had to finance yourself back from the taxman. You arrange this in your next income declaration, and your financial advisor or bank can assist you with this.