Buying a new house can be a stressful experience, from the length of time it can take for everything to fall into place to the chore of packing up your life into boxes – and often, what should be an exciting milestone can become a nightmare.
With a bit of foresight, however, you can reduce some of the financial stress. To help you get your hands on your dream home without the hassle, we’ve put together 7 top tips to help you get the move out of the way without any hiccups.
1. Know your credit rating
Even if you have a great credit rating and are targeting luxury homes at the top end of the market, issues are not beyond you, and so it pays to be clued up about anything that could possibly set you back. When dealing with clients classed as ‘high net worth,’ most mortgage decisions go to a manual underwriter, so it’s important to be aware of anything that might raise a red flag – even if your credit score is high and you’re a regular payer. Have a look at a finance blogger sites to get an idea of what to look out for – you’d be surprised at how dormant or unused credit cards have the potential to count against you.
2. Have a healthy amount of debt
When it comes to high-value mortgage applications, not all debt is viewed in a negative light – and surprisingly, it’s actually viewed as healthy to have some. Existing debt that you make regular repayments on shows your trustworthiness and credibility – and can actually go in your favour when it comes to securing that dream home.
If you have too high a proportion of debt, however, this might have a negative effect on your attractiveness to lenders. Spend some time paying off debt to bring down your overall percentage to no more than 10-20% of your combined annual income – so, for example, someone who is earning £100,000 a year should have no more than £10,000-£20,000 in credit card or loan debt to be at a safe level when applying for a mortgage on a new home.
3. Know what determines your loan terms
Building a luxury lifestyle includes securing your dream home, and the last thing you want is to see it slip through your fingers because of a silly mistake.
Spend some time understanding the terms and conditions to make sure you’re all good to go when the time is right. Pick up the phone to your personal mortgage representative at the bank (or a broker or if you use one) and have them chat through everything before you start the formalities. Otherwise, Loan Advisor is a great source of information when it comes to money matters for your home.
4. Measure things up before ordering any interior decor
One mistake a lot of people make is getting too excited about decorating and furnishing their new home. This leads to buying/ordering a lot of furniture in advance, which may or may not fit in. The best thing to do (according to Cardiff Blogger Stacey Hughes) is wait until you move in and measure up to avoid disasters. Or alternatively, politely ask the current owners if you can have an hour or so in the house to measure up, so that you can still order things in advance. Although this relies on your current occupants being friendly and reasonable, it’s often an effective solution.
5. Make sure your utilities are ready to transfer across
Whilst it might not be the most exciting of topics, making sure your utilities are ready to transfer across to your new dream home will make life far easier when it comes to the move. Power companies can cut you off pretty quickly if there is no valid resident registered at the address – the last thing you’ll want to contend with after getting settled in.
With a high end home that might use a lot of electricity on lighting, special garden features such as a hot tub or indoor features such as large home entertainment systems, your cut-off point could be pretty quick – so be prepared, plan ahead – and ensure your move runs smoothly.
Moving home doesn’t have to be stressful, and a little organisation is all it takes. Bear these five tips in mind, and you’ll be planning your house-warming party in no time.
