Demand for larger family homes is on the rise. With many people spending more time at home than ever before due to the coronavirus pandemic, space is at a premium.
Popular properties in the most desirable areas are flying off the shelf almost as soon as they hit the market. If you want to secure that dream family home, you need to act smart and fast! We’ve put together our top tips for navigating through the purchasing process to help you buy your perfect family home.
Know Your Numbers
Before you start looking for houses, crunch the numbers. The first step is to assess your household income and decide how much you can afford to spend on a larger family home. Are you happy taking on a larger mortgage and limiting spend elsewhere? Or would you rather keep mortgage payments as low as possible to leave you with a comfortable disposable income?
Next, you’ll need to work out what sort of mortgage you can afford. Use a quality mortgage calculator to give you a general idea of how much you could borrow. This won’t give you an exact borrowing amount – this depends on several factors and affordability tests – but it will provide enough of a guide to help you work out a rough budget.
Another idea is to speak to a mortgage broker. There’s a range of mortgage options out there to suit every person and family.
The type of mortgage you choose will significantly impact how much you can borrow, so it’s essential to understand your options before you start house hunting.
Stick to Your Budget
It can be tempting to overspend on a property you fall in love with – what’s a few more thousands when you’re spending so much? After all, extra space is undoubtedly worth a few more grand, right? However, it’s essential to avoid spending money on a property that isn’t exactly what you’re looking for. And even if it’s perfect for your family, overspending will lead to financial difficulties and stress later on.
Speak to a mortgage broker before you start looking for your perfect family home to create an accurate budget that won’t lead you to bankruptcy.
Create a Wishlist
One of the most valuable aspects of property hunting is putting together a wishlist of properties you’d love to own. You need to build this list gradually as you go along. There’s no point going to a real estate agent when you only have a vague idea of what you want (click here for more info on real estate agents).
If you’re doing this with the help of a mortgage broker, use the budget that you worked out with them to see exactly how much you can afford. Before you start seriously looking for a house with the help of an estate agent, create a list of the different properties you’d love to buy. This can help you to identify the property features that are most important to you as a family.
You can then work out the types of mortgage you can afford and how much you’re in a position to offer on a property. This is where a mortgage calculator can come in handy.
Keep Up to Date
It’s essential to keep up to date with any new developments in the property market. Changes to the affordability rules can mean that you need to put more down to borrow the amount you need.
This means you need to give serious thought to how you’re going to make your finances work and consider this when you start looking for your dream home.
Use a Mortgage Calculator
There are several free online mortgage calculators you can use that can help you work out the type of mortgage you can afford and how much you can borrow.
Using a mortgage calculator can also help you avoid falling into common pitfalls. For example, some mortgage calculators can calculate mortgage fees, but some don’t factor in additional costs that can affect your ability to pay back your mortgage.
Put Yourself in a Strong Buying Position
With competition for larger properties so fierce in the current climate, you need to be in a strong buying position to secure your dream house. If a seller has multiple offers to choose from, you’ll stand a much better chance as a chain-free buyer. Property chains often lead to problems, delays and even failed sales. If you need to sell your home to buy the new one, a reputable cash house buyer can purchase your home in as little as seven days, putting you in an excellent position as a chain-free buyer to negotiate on your dream home.
Consider Your Location
The location of a property can have a significant influence on its value. In some parts of the country, such as London, people have higher house prices and more disposable income. In other parts of the UK, prices are a lot lower.
Take this into consideration when planning your next house sale and purchase. You’ll also need to consider how long you want to live in a particular area – are you likely to stay long enough to benefit from any future uplift in value?
It is possible to buy your dream family home if you plan carefully, manage your expectations and make yourself an attractive buyer. Take your time to research, budget and plan and your dream home can become a reality!