Top Concerns by Buyers When Purchasing Propertyfjpinvestment
Next to starting a family, buying your dream home can be one of the most exhilarating times in someone’s life. When everything doesn’t go smoothly according to plan, as sometimes happens, it can be a trying time for those involved. Concerns by first-time buyers in particular can find themselves overwhelmed as they endeavour to find their feet wading through the process of buying.
It is therefore a good idea to be aware of some of the common issues that can pop up during the home buying process, so you are not caught totally off guard if something does happen. Being away can also help reduce the likelihood of it going wrong.
Securing a mortgage
Whether you go through a bank or a lender, it might take several months to locate the proper mortgage lender for you. In order to get the best deal, you should shop around for the lowest interest rates and other factors that are important to you. In certain circumstances, a mortgage broker can help advise you on finding the best fit for you.
However, obtaining a mortgage may be a genuine challenge at times. Rest assured that there are plenty of willing lenders out there that would lend you money in order to make money off the interest you’ll end up paying, but they need to make sure you’re capable of fulfilling your financial obligations.
To improve your chances of securing the mortgage of your dreams, you’ll need to have a good credit score and a clean credit history. As soon as you begin to think about purchasing a home, start working on your credit score and talking with your bank about strategies to improve your chances of getting a mortgage.
To avoid many of these issues, you should do your homework and speak effectively with your estate agent, attorney, and mortgage lender. You can’t control everything, so simply be prepared in the event that anything unexpected happens.
Problems on completion day
A completion day is the date on which all funds outstanding have been transferred and keys have been exchanged. Your new house will be yours on completion day! It’s a thrilling time since it marks the beginning of your being able to move into your new home.
However, a few obstacles might arise, such as bank delays, difficulty with the removal services of either side, and property that was agreed to be left by the sellers (listed in the TA10 document) not being present. Many of these problems may be resolved by talking to your bank. For example, the bank can move quickly to authorise large amounts of money to be approved.
Problems from delays in the chain
Nearly 20% of house buyers and sellers have issues with delays in the property chain. When a seller also buys a property, it’s called a “property chain,” because there are many properties in the “chain” of transactions. It’s more likely that there may be delays and issues as the chain becomes longer; in certain cases, it can even collapse, sending everyone back to the beginning.
Property found in poor condition
When selling a home, the seller must complete a TA10 form that lists all of the items that will be included in the transaction, such as any white goods or furniture. For buyers, you’ll also be required to sign this if you want anything left in the house. The TA10 is done for each room in the property so that everyone knows exactly what is included in the transaction and what is expected to be left behind when the seller moves out.
On moving day, if the property is in bad condition or has unlisted items, it may really put a downer on what should be an exciting day. The seller’s breach of contract may entitle you to compensation, so speak with your estate agent if this occurs. In most cases, all that’s required is a thorough cleaning and some redecorating to remove the remnants of the previous owner’s stay in the property.
Problems from delays caused by the seller or others
According to Jamie Johnson, CEO of FJP Investment, “If you’ve never sold a home before, it may be hard to understand what may be holding up the transaction. Once the property has been listed, you could be wondering, then surely it must be ready for immediate sale? The problem is that this isn’t necessarily how it turns out. For example, delays can occur if the seller makes a mistake on one of the numerous required forms.”
Indeed, any issues found in the survey, improper documentation, or identification provided by either side can cause delays. It could be something simple like forgetting to check that your ID has the correct address on it. Furthermore, if the estate agent or solicitor is particularly busy for some reason, they could cause delays due to taking more time than usual.
If you’re in a hurry to buy, be sure to let your real estate agent know so that they can only show you houses whose sellers have completed all of the necessary paperwork and are ready to move immediately.
After accepting your offer, the seller may back out and accept an offer from a different buyer with a greater price. This is called “gazumping” and is not illegal. Gazumping is distressing for buyers since it results in you not only losing your dream property but also whatever money you spend on things like searches, surveys, legal costs, and mortgage applications. However, it is possible to insure against some of these costs, which is worth looking into.