Buying a house is probably one of the largest transactions you will make in your life. Prepare yourself with knowledge becomes the process smoother and you happier. We offer a guide of what you need to know for house purchase.
1. Get pre-approved
Apply for mortgage
Contact the bank or mortgage lender early in the process for pre-approved, so you know you can get to work when the time comes. It is also important to know how high you can go on a bidding arise.
You can borrow up to 85 percent of the property value. The remaining money – the so-called cash stake – you need to pay yourself. A loan commitment is no cost and is not binding, but limited in time.
Compare mortgage rates
Naturally, you want to have such a favorable loan as possible. Compare mortgage conditions from a number of different banks. When you find an interesting house, it is important that you first agree with the bank or mortgage lender so that they approve at the house you want to buy.
2. Find the right one
Start by listing the requirements you are not happy with the compromise, such as number of rooms, renovate or proximity to school – so it will be easier to make a choice. Even if you are not quite sure what you are looking for, it might be smart to start going to different views. You learn by watching, compare and ask questions about different items and can also be easier to work out what it is you are looking for – and what you are not looking.
Get to know the neighborhood
Once you get stuck in a house – take the time to walk in the area, talk to someone next door and check the proximity to shops and other things. Also find out how the area"s zoning looks, so there will not be any unpleasant surprises later.
Find the right price
You may already have an idea of what area you want to move to? Then take a look at the statistics for final prices and price trends over time for homes in your dream area.
3. Read up on the house
The tour provides a description of the object of the broker with any information on the property; how the house is built, heating systems, installation costs, and what is included. Data on mortgages and easements should be included here.
In connection with the sale, the seller must also demonstrate an energy made by an independent expert and that shows how much energy the house consumes.
Although the seller has a certain disclosure requirements and should describe the house all the faults are so maybe not everything in the property description. You as a buyer are covered under the law of a major survey duty, so for your own sake – make sure that all the house"s defects and shortcomings on the table before the purchase. You can not subsequently be compensated for the errors that you should have discovered.
4. Calculate the costs
Look at what needs to be repaired …
Look especially carefully at the building"s shell and those that may be costly to get in good condition – as roofing, windows and facade. Ask questions about drainage needs and what vintage it is on electricity and sewage systems. Look a little extra in the basement, attic and bathroom and pay attention to moisture damage.
Make a budget
before you finally decide, you should of course make a budget for future loans and operating costs. The vocal since the budget with your bank so that you do not delight calculations in your eagerness to afford. In the scenario, you should also include the expenses for renovation, title deed and any new mortgages, property tax and any ground rent.
Title deed is a recording of the purchase of real estate. You are applying to be registered as the owner of the property at the Land Survey. You pay a stamp duty to get the title, currently 1.5 percent of the purchase price plus an additional fee.
Mortgage is a document that serves as security for any loan amount you need to take. If the seller has already loan on the house, there may be mortgages which you take over as security for your loan. New mortgages will cost 2 percent of the pledge letter amount plus a fee of a few hundred (2016). Often the bank can help with the collection of new mortgages.
Property tax has been replaced by a municipal property tax. For tax year 2015 betelar you with single-family property tax with a ceiling of 7262 crowns. About 0.75% of the assessed value of 2015 provides a lower fee, you pay it instead.
Sometimes it happens that the state or the municipality owns the land the house is built on. In order to use the land, you as the owner to pay a ground rent, the rent every year.
Other extra expenses
Living in a villa or townhouse can also involve costs you have not had before, such as garbage collection, sweeping, water or alarm. You may also need to buy lawn mower, wheelbarrow, shovel or snowblower.
Heating costs can vary significantly over the year, and between mild and cold winters. Perhaps you earn to replace heating systems?
A house also requires that you have an extra buffer for things that need to be maintained regularly. Roofs need to be rescheduled, windows need to be painted and the boiler may need to be repaired.
Do not forget to set aside some money for the move itself and the additional costs that the new address could mean, for example, higher petrol consumption or public transport.