Making your first purchase of a real estate asset

How does a first purchase of a real estate asset work?

We all dream of having a house of our own, to furnish and decorate in its entirety to our taste. Do you have money set aside and allocated to this and are you ready to settle down somewhere long - term? If this is the case, then maybe it is the right time to make your first real estate purchase! But how does it work and what do you need to take into account? 

The search for a mortgage l(secured loan)

The starting point is to research and negotiate a home loan. You will need to consult with and compare several banks / financial institutions to learn how much you can borrow and what your monthly repayments will be. Once you have set your budget, you can go house hunting. Do you have one or more houses on your wish-list? If you do, you can start to negotiate the terms of your home loan with the various banks / financial institutions.

TIP: Make enquiries of several banks to ask for comparative quotes, so you can compare.

Visiting potentially suitable houses

Wondering what to look for when buying your first home? When visiting potential properties, you need to think out of the box a bit: don't rely on first impressions. Look at the positive aspects and compare them with the negative ones. Also check that the house meets your needs and complies with all necessary standards.

When visiting the various candidate properties, pay careful attention to each house’s location and condition, and don’t forget to ask about the various permits. Concerning the location, consider not only the distance from the centre, work and school, but also the orientation of the house: is it south facing? Does the house let light in? To improve the condition of the house, consider insulation, energy performance certificates (EPBs) and possible moisture problems. Finally, it is important that the house has all the necessary authorizations.

A second visit

Did you like a particular residence? If so, don’t start by negotiating the price right off the bat. Your first move is to sit quietly and put everything down on paper. Summarize all aspects and consider any questions that may have arisen during the visit. Having written everything down, and put everything in perspective and come to the conclusion that you are still interested in the property, schedule a second visit and ask any remaining questions you might still have. You could also consider taking an expert along, as he will have a more objective view of the property than you do.

Making your first real estate purchase subject to contract

If you now have found a home that you are interested to buy, start by negotiating the price, culminating with you making an offer to buy.

Another possibility available to you is to make an offer to buy your first home under reserve. This means that you define a number of conditions in the "provisional sales agreement", in order to give you the possibility to withdraw from the purchase. One of the most common conditions is the acceptance of a mortgage offer by a specific date. If the offer is not accepted prior to that date, you will still be in a position to withdraw from the deal and cancel the purchase.

With the above tips, you have all the tools at your disposal in order for you to conclude your first real estate purchase. Good luck in finding the house of your dreams!

 Is this the first time you are making a real estate purchase in the UK? For tips and help in this area, click on this link to be taken to a mine of information!