Three Key Questions to Consider Before Buying Your First Property
Thursday, August 28, 2008
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The commitment to buy a property and invest in a mortgage for the first time is not one to be entered into lightly, and should only be made after you’ve fully considered your options. There are certain questions that you can ask yourself to find out if you’re really ready to take the first step on the property ladder.
Are you ready emotionally? Clearly the decision to buy your own property is a very significant one, and is by no means a short-term commitment. This is why you really need to be sure of what you want before committing yourself to anything – if there’s any chance that you might change your mind, it’s better to decide before getting a mortgage. If, for example, you are fond of travelling and think that there’s a possibility that you might want to go off for a couple of years before settling down, think twice before considering a mortgage – if you need flexibility in your situation then make sure you have it. Equally, think carefully before buying property with a partner. Whilst it can be wonderful to live together, a mortgage is a serious financial commitment so it’s best to be sure that you’re both ready for that.
Are you ready financially? If you’ve decided that you’re definitely in the right situation emotionally to buy a property and get your first mortgage, be sure to check that you’re also ready financially before rushing any decisions. It may sound simple, but as a first time buyer it’s easy to forget how much a mortgage will actually cost you from the very beginning – do not be tempted to ignore the hidden costs and fees in your contract, and remember that you’ll need to have some money put aside for your deposit. This can be the most significant cost that you are faced with, and if you haven’t prepared by investing some money in a good savings account, then it’s in your best interests to hold off for a while until you’re ready. Many banks are still offering competitive rates on their savings, with Alliance and Leicester coming as recommended for savings accounts. Take a look at their site for fixed rate bonds, ISAs and online saver options.
Are you ready mentally? Buying your first property can be a very rewarding experience, but it’s worth remembering that it is a very complicated process and you will need to be ready to keep a cool head when dealing with budgeting, mortgage options and procedures that will, for the most part, involve your entering into the unknown. Things like budget and a mortgage calculator (available on most bank websites) should help a little with this, but if you’re not ready to take on a lot of new information and responsibility, then it could be worth waiting until you feel more prepared.
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