Buying your first house can seem like an unattainable dream at times, but every once in a while you hear a story of a couple who were able to save enough money for a down payment. It gives makes you think that, someday, that could be you. However, there is more to buying a house than saving up for a down payment. Read the guidelines below to determine whether you really can afford to buy a house at this time.

Do you earn enough?

If you’re struggling to set aside some money while paying the bills and the rent, chances are you will have a difficult time keeping up with mortgage repayments. You also have to consider the property tax in the area, home insurance, and the fact that you will be responsible for home repairs. This is the step that traps most prospective home buyers.

But don’t give up because you can’t afford a house just yet. Use the time you have to get on top of your financial situation; pay off as much debt as you can and boost your credit wherever possible. This will help your chances of getting a good mortgage.

What kind of financial help can you get?

Once you’ve managed to save some money, you need to find out how much a lender will be willing to give you to buy your first home. A mortgage lender will look at your income, how much debt you have, and how long you’ve been at your current job. All your debt payments plus your new housing expenses – mortgage, homeowners association fees, property tax, homeowner’s insurance, etc. – shouldn’t equal more than 43% of your monthly gross income, according to the federal housing administration (FHA). Based on your calculations, you may have to adjust your expectations on what kind of house you can afford.

Fortunately, there are a lot of other options available for first-time buyers who don’t have a 20% down payment. Your state may have its own programs for first-time home buyers. Your mortgage interest rate will also have a major impact on the total price you pay for your home, so shopping around will pay off.

The buying process

Buying a house isn’t limited to looking for homes for sale on real estate websites. Put out some feelers with friends and family, or look at rental ads and see if the owners are open to selling. This may not be an accepted method, but it will save you from going up against experienced buyers.

Squeeze them for information

Don’t be taken in by what may appear to be a dream house. One of the best kept secrets about buying a home is that your real estate agent has to be honest with you, but only if you ask questions directly. No question is too silly; how many viewings have they had? Why do the homeowners want to sell? Who lives upstairs/next door? You’re hoping to live here, so avoid any unpleasant surprises by finding out everything you can.

Share to Explore !!

Facebook

Digg

Pinterest

Twitter

Reddit

Linkedin

StumbleUpon

Tumblr

Print

email

Yummly

Buffer

A home insurance policy is a great way to secure one of your biggest investments. That said, a lot of us are quite apprehensive about the home insurance premium. But it is essential that you get a proper home insurance policy to safeguard yourself against any distress caused in the event of a mishap. It’s all about doing some homework and get your basics right when it comes to home insurance requirements.Don’t know how to go about it? No need to worry, read on.

Today you can find a lot of home policies from insurance providers, offering different types and levels of coverage. Naturally, the first thing therefore to do is to analyze your coverage requirements carefully. With this understanding in place, you will be in good position to know what to look for and make an informed decision.

Another thing on similar lines is to identify what type of coverage is needed for your house. Basically, there are two types of home insurance coverage one can opt for. A home insurance that covers just the structure will only insure your house against structural damages. While on the other hand, a home contents insurance policy will cover your household items against loss and damage. For instance, if you happen to live in an area that is prone to floods, go with structural home insurance. In case your house is susceptible to theft and burglary, it makes sense to go with the cover that offers content protection.

In the event that you need both types of coverage, it is advisable that you subscribe to the same home insurance company. This will help you save on the policy premium as well save the troubles and hassles arising during claims.

Another great tip to get the best home insurance deal is to compare policies online. You can find several aggregators and comparison sites on the internet that present you with in-depth comparisons. This is a great idea to avail the best offer. Additionally, there is a high chance that you will get a good discount on the premium too. This makes it a win-win for the customers.

Next, you should ponder about something called as the ‘excess’. Simply put, it is the amount that you pay out of your pocket during a claim settlement. The simple calculation here is that the excess is inversely proportional to the premium. However, this needs to be thought through as it is all about striking the right balance between the two.

You can also reduce your premium costs by installing safety equipment such as fire and smoke alarms. An anti-theft alarm is also something that’s gaining popularity these days. With such precautions in place, the insurance company will reduce the perceived risk for insuring your home and will in turn reduce the premium.

Once you have finalized the policy, you can aim for the no-claim-bonus. When you don’t file a claim for a certain period of policy coverage, the insurance company will offer a discount on the premium during renewal. However, this varies across companies and thus needs to be checked before buying. That’s it! With the help of the aforementioned pointers, you will be able to get the most out of your home insurance policy.

Share to Explore !!

Facebook

Digg

Pinterest

Twitter

Reddit

Linkedin

StumbleUpon

Tumblr

Print

email

Yummly

Buffer

Home loan closure brings relief and increases financial standing since you no longer have to pay a large chunk of money as EMI. But when closing a home loan, you should complete all relevant formalities to keep the procedure smooth and hassle-free. You must keep in mind that paying the last EMI does not close your home loan. You have to get a formal letter from your lender stating that your loan is officially closed. Below are some pointers that will help you closing your home loan successfully.

Collect all your original property papers

Around the time of loan disbursal, after you apply for a home loan, your lender asks you to submit a number of documents that generally vary from one lender to another with some documents being common. When closing the loan, make sure the lender returns all your original documents. Usually all banks submit the following papers:

● Power of Attorney
● Sale deed
● Conveyance deed
● Builder buyer agreement
● Possession letter
● Payment receipts
● Transfer permission
● Tri partite agreement

Get security cheques

Most lenders take security cheques at the time of loan disbursal just in case the borrower defaults on EMIs. Once you close your loan, ensure that you get the security cheques, if any, back and when you do, destroy them for good.

Obtain No Objection Certificate (NOC)

Ask your lender to provide with an NOC as a proof of full and final repayment as well as closure of your home loan. The NOC comes handy for lien removal and also in case, you sell off your property.

Get the lien removed

You can simply go to the registrar office with the NOC from your lender to get the lien removed if your lender delays in doing so. Removing the lien means that lender can no longer keep the possession of property any more.

Update CIBIL

You should request your lender to update your CIBIL information as a successful home loan closure. Without a CIBIL updation, you may face issues if or when you need to avail credit from any financial institution.

Avail other documents

Other than the documents you submitted to the lender at the time of home loan disbursal, you should also ask for other important documents like a complete loan account statement, principal certificate and interest certificate, which are important for filing Income tax returns.

Share to Explore !!

Facebook

Digg

Pinterest

Twitter

Reddit

Linkedin

StumbleUpon

Tumblr

Print

email

Yummly

Buffer

Buying a home involves a lot of fun and games and by fun and games, we mean trials and tribulations. Once you find the home that you want to buy and that you can afford, you might think your troubles are over. Not so, because you still need to put an offer in on the home and get it accepted. Then, you’ve got to find a mortgage lender to get the rest of the money to pay for the property. When you have that finalized, you still need an inspection, solicitation and a moving team. Do you see what we mean by fun and games? But, if you know how the market works most of the problems can be avoided, so let’s get started.

Likeability Is Important

Did you know that whether or not the homeowners like you can be very important when buying a home? Estate agents aren’t usually swayed by different personalities. But the property sale might be represented by the owner. In these cases, it’s important to try and make a personal connection. Find similarities in your situation and try to relate with issues you’ve both experienced selling. If you do this, there are two things that might happen. First, they might give you first refusal on the home, no matter what other offers come in. Second, if there are two or more similar offers at the same time, they might choose you over other buyers.

Brokers Have Additional Access

Getting a mortgage can be like getting a book deal. If you want to get a book deal, you need a literary agent. Otherwise, publishers aren’t going to look at you at all. If you want to get a mortgage, you need a broker you to get through the gates lenders have. The best mortgage deals are behind these metaphorical gates, and you’ll only gain access if you find a mortgage broker. These deals are not even advertised or spoken of if you ring up the lender yourself. This is just one of the advantages of having a professional on your team when you’re buying a home.

Gazumping Is Common

Gazumping is still common and legal in most places. When you put an offer down on your house, and it is accepted, the house might stay on the market. At that point, buyers can still put in offers and outbid the price you’ve agreed with the seller. It’s a nasty practice, and it happens more often than estate agents would care to admit. There are a couple of ways to avoid it. Ask the estate agent to take the home off the market after the offer is accepted or refuse to make an offer. Make sure the buyer likes you enough that they wouldn’t want you to go through being gazumped. Finally, get your paperwork and solicitation sorted out as quickly as possible. Do all of these things and you should avoid being outbid after an offer is accepted.

Estate Agents Have, To be Honest

If you want to find out if there are any issues with a house, an estate agent must tell you. However, they are only legally required to tell you if you ask the question. An extreme example would be a house where someone has been murdered. Unless you ask if there have been any crimes on the property, they don’t have to say. That’s why you must make sure any questions for estate agents are direct and specific.

Share to Explore !!

Facebook

Digg

Pinterest

Twitter

Reddit

Linkedin

StumbleUpon

Tumblr

Print

email

Yummly

Buffer

So – you’ve had an excellent idea for business and thought it might be a success? Well, congratulations. It’s an amazing experience owning a startup and seeing something grow from an idea to an actual business. However, there are a lot of things that can go wrong – unless you have the right protection in place.

Most business owners understand the importance of security – but you have to start sooner rather than later. In fact, ask any legal expert and they are likely to tell you to sort out your protection before you even write your business plan. In this guide, we’re going to reveal five simple legal tips for fledgeling startups. Take a look and make sure you have the right protection.

Consider your structure

Before you start work, you will need to register your business with HMRC. It’s advisable to register as a company, rather than a sole trader, as it gives you a little extra protection. You should have a chat with an accountant, too – they will tell you the type of company you should be to save on your tax bill.

Contract everything

From the second you start dealing with other people, make sure you have a contract. It could be a partnership or an employee – it can also be a supplier or investor. In short, anyone that has any contact with your business needs to be held in a contract. It outlines everyone’s responsibilities and expectations and holds both parties to account.

Intellectual property

Don’t forget that your ideas have value, too – and it’s essential you protect them. Trademark registration is a simple process, as is applying for patents or copyrights. Ensure you do this as early as possible. If you have a very good idea, you don’t want someone stealing it from you and making a fortune off the back of it. It’s happened many times before, and will continue to do so if you don’t have intellectual property protection.

Hire a business lawyer

Don’t underestimate how useful a business lawyer can be for your fledgeling startup. They can help you cover yourself in a legal sense, and highlight areas of potential improvements. If someone files a claim against you, they can react quicker as they already understand your business. Just like having an accountant, it will save you money in the long-term. The amount of legal help you might need will be enormous as you grow your company. It makes sound sense – financial and otherwise – to use the same person.

Get insurance

If the worst happens, you have to have insurance. No matter how safe you think you are operating, there is always the chance of something happening. A slip, trip, or fall on your premises can lead to an expensive lawsuit. An unhappy client could pursue you for damages – even if you think you have done nothing wrong. It all adds up to a large payout, which could blow your startup out of the water before you even get started. Insurance will give you the peace of mind you need to make your business success.

Share to Explore !!

Facebook

Digg

Pinterest

Twitter

Reddit

Linkedin

StumbleUpon

Tumblr

Print

email

Yummly

Buffer