Are You Thinking Of Buying/Selling A Home? This Might Help!
The whole process of buying or selling a home usually takes 2 to 3 months of time. The procedure of trading in a property does not involve just the exchange of money and key. There are some other factors that must be taken care of too.
The Involved Law
- If you are dealing with a sale or purchase of a house, make sure that these norms are being followed:
- The owner of the house is responsible for getting an Energy Performance Certificate for the property before the ownership is transferred to someone else.
- If an estate agent is involved in the process, then all potential offers must come through him, and not the owner of the house.
- The owner is liable to draw up a legal contract in order to change the rightful owner of the house.
- The transfer of ownership is deemed complete only when the entire exchange of contract takes place.
- The buyer may have to make sure that the stamp duty and the land tax related to the property is paid.
The UK law allows a joint ownership of a house by up to 3 people. The legal contract is written in the name of all owners.
The percentage amount that each owner contributes in the house price is the percentage of his share
Money for the House
A UK citizen wanting to purchase a house is free to use his savings or income to pay for it. But it does usually get more expensive than that. The price of a house is not less and rarely does anyone have that much savings.
People have been known to mostly take home loans while purchasing a property. This helps them in two ways. They become a home-owner and they do not have to let go of their savings.
Home purchase loans are readily available with the traditional sources and with the online direct lenders. The online lending community has flourished greatly in providing home loans and mortgages. They even have loans for unemployed people and those with bad credit.
You should compare all the deals you are offered via both sources and then decide the optimal solution for you. The interest rates and additional costs can vary greatly across different options offered to you.
More read: Best Tips To Follow For Freelancing Career.
Tips for your Home-Loan
1. Affordability: Borrow only what you can repay.
It would be a good idea to consider your debt-to-income ratio before you decide your home loan amount and instalments. Borrowing more than you can afford will only burden your finances.
2. Repayment period: Your interest is compounded when you take a home loan. Mathematics dictates that a shorter repayment period means less interest.
Be wise enough not to drag your loan unnecessarily for a long time. Though shorter instalments will be more convenient for you, but will make your loan very expensive. Focus on paying off your loan as quickly as possible.
3. Family insurance: Protect your family. In a situation where something was to happen to you, your family must not bear the financial consequences of repaying your debt.
It is highly advisable to cover your family with insurance, and be highly responsible while paying off your loan. You have to be diligent and protective about your family so that they are not made liable with a heavy burden of debt.
4. Terms & Conditions: Read between the lines. A wise borrower read the fine print. There may be many hidden clauses and costs mentioned in the loan agreement which may come as a surprise to you if you do not pay attention.
Make sure to familiarize yourself with all the numbers and costs pertaining to your home loan. You should not feel cheated or shocked when you see some extra charge coming your way.
Talk in detail about early exit-fees and prepayment clause with your lender. Know your obligations and liabilities beforehand.
Losing Your Job
A home loan usually involves an installment repayment method. That means the period of the loan extends for many years. Since life is not stable, your employment is not either.
There may be times when you find yourself out of a job, or running between jobs. Or you just might be waiting for another job offer.
But your loan installment does not understand this. Missing an installment attracts penalty and affects your credit score too. That is why it is advisable to make use of guaranteed loans for unemployed in such a situation.
Doing this would keep your repayment schedule on time, and there would be no penalty or consequences to bear.
Being a homeowner is a big responsibility, and being under debt is even bigger. Commit yourself to be debt-free and behave responsibly while repaying your home loan.
Description: Paying off a home loan is a long commitment. For every up and down along the way of repayments, you can avail loans for unemployed people to get through a rough patch.