AGT Property – BLOG – How To Work Out What Value Of Property You Can Afford
Buying a property is a big deal financially. It is a substantial long-term commitment, and you need to make sure you know how much you can afford. To do this, you need to consider the assets that you have. For example, if you have savings could this be a deposit. In addition to this you need to think about how much money you have coming in and out every month.
The worst thing you want to do is to commit to a mortgage and then realise you can’t afford it, or you can only afford that and nothing else. Take the time to write down what you earn and what you spend. This will help you better understand your finances and will help avoid overstretching your budget too.
Below we share some of the things you need to know to work out what value of property you can afford.
How Much Can You Borrow?
Every lender will have different criteria for the amount they will lend and if they will lend to you at all. This criterion will tend to include the deposit amount you have and your regular expenditure. Lenders will also want to look at how much you earn, what your income is and your credit rating too.
The actual loan amounts and affordability criteria will change from one lender to the next. This is why it is a good idea to speak to a professional mortgage lender. They will be able to shop around for you to get the best deal, suited to your financial situation.
What Home Buying Costs Are There?
Sadly, buying a home isn’t as simple as finding a home, putting down a deposit and paying a monthly mortgage payment. There are other costs involved in buying a home too. It’s important that you are prepared for these to avoid any nasty financial shocks.
For example, there will be solicitors’ fees and legal costs. You will need buildings insurance on your property too. Stamp Duty Land Tax may be required, dependent on the value of the property. There will also be Land Registry fees, costs for surveys and more. Not to mention, set up fees for utility companies and movers fees too.
Can Self Employed People Get Mortgages?
When you are self-employed you can still get a mortgage, but there will be a lot more questions that you need to answer. It’s important to make sure your business accounts are in order. This will help speed up the process.
Want An Accurate Estimate Of The Value Of Property You Can Afford?
Speak to a mortgage advisor about a mortgage in principle. This will give you a chance to look at your financial situation with the mortgage advisor and see what you might be able to borrow. The mortgage in principle will outline the size of the mortgage you get. This will help ensure you look at properties with your budget and are prepared to speed up the process of the house sale.
Looking to buy your first or next home in Peterborough or surrounding areas, call our team now.
