If I were going to buy a house after leaving University, how, and why would I do it? What type of house would be suitable for me? Where should I get a mortgage form? These are the questions I am going to be addressing in order to, in theory, buy my own house, using different steps. .
What can I afford?.
To find the price that I can afford I will have to look at these six factors: .
1.Gross income.
2. The amount of cash I have available for the down payment, closing costs and cash reserves required by the lender.
3. My outstanding debts .
4. My credit history .
5. The type of mortgage I want to select.
6. Current interest rates .
What type of house do I want?.
As this is my first house I would be looking for the cheapest accommodation as possible, as I am likely to be in debt, or have loans from University. I would want it in the area I am working, so I have selected Sussex. .
The house I have chosen to look at is in Hastings, and is £23,000. It is a one bed lower ground floor flat close to the centre of Hastings, with the Priory Meadow Shopping Centre a few minutes walk away. The flat is within easy access of Hastings main line railway station. This property is in need of refurbishment. It has one bedroom. .
This is a very good price for the house, but as there is no photograph provided suggests that there could be some problems.
The Financial Advisor.
The next step would be going to talk to my financial advisor at Nationwide. They can advise me on the best type of mortgage to get, and say if they will lend me the money. The criteria's they will look at will be:.
1. If I am in full time employment.
2. If I have owned a house before.
The Building Society will normally offer to give me 2-3 times my salary as a mortgage. On top of that I will need to pay £2,300 (10%) for my deposit. .
Surveying.
The Building Society will normally send round a surveyor to do a cursory survey on the house. This mans they will check if it is worth what the owners are selling it for.