When you decide that it’s time to get on the property ladder, it’s tempting to jump in headfirst. After all, this is the start of one of life’s most exciting adventures. Yet you can do yourself more harm than good if you don’t take the time to think things through.
So, what factors do you need to account for?
In this article, we’ll share four questions to consider before house hunting.
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- What’s your borrowing potential?
You want to get the best rates possible when taking out a mortgage, as this is what will determine the overall impact owning a home has on your finances. Your credit score is the biggest factor in determining what mortgage rates lenders offer you. So, it’s important you find a reliable way to improve your credit score and use it consistently. This will give you better borrowing potential when it comes to applying for mortgages.
- What’s your budget?
Many people make the mistake of thinking about what type of house they want before working out what they can actually afford. But it’s far better to do things the other way round. You don’t want to pine after homes you can’t afford or be tempted into getting a home that makes your financial life miserable. So, make sure you work out your budget first.
- Where do you want to live?
You can knock through walls and build extensions. But you can’t change your house’s location. So, you need to make sure that it ticks all the right boxes before you buy. Consider how location will impact your needs, such as commuting to work, accessing shops and seeing friends and family. Take the time to explore any areas that make your shortlist so you can get a feel for what the environment and community is really like.
- What do you want?
With your budget in mind, you’re in a good position to consider what you want out of your future home. Try to be realistic to what you can afford. Take the time to research what’s on the market to get a good idea of what you could get for your price range.
It can also help to make a list of what’s most important to you. How many bedrooms do you want? Do you want a home office or maybe a big garden? Whatever features you want your future house to have, bear in mind that you might need to compromise on some of them.
Finding the perfect house to move into is difficult. But you can make the challenge significantly easier by asking yourself the right questions. What haven’t you considered before you start house hunting?
