…Buying a new home is very exciting. Owning a house is not only a good investment but it goes with pride of ownership.
Property investment affords the opportunity for a direct personal control and management. Apart from that, the property itself is often regarded as sufficient security for a lender. Property is less risky, and the income from property as an investment is generally less volatile than many other kinds of investments.
Before buying a house, location is of prime importance. Location is a long term fixed investment. Price can be matched, services can be extended and improved but location advantages are very difficult to assail or neutralise. Before buying a home it is important to follow the following guide.
- Work out how much you can afford to borrow. Financial institutions are more than willing to help you regarding this. Do not be afraid to approach your bank as it is their business to borrow you money as long as you have a reliable monthly income.
- Once you have worked out how much you can afford to borrow, look for property within that price range. Make sure you use Mgilija Properties as they are registered and professional estate agents.
- When you have found the property you wish to buy you need to visit your bank, do not forget that you will need to pay a deposit for application. Amongst other documents, the bank normally require whatever that is:
(a) Certified copy of identity document;
(b) Salary advise slip or confirmation of income;
(c) Utility statement e.g. (electricity bill);
(d) Certified copy of marriage certificate if married;
(e) Deed of Sale signed; and
(f) Valuation fee.
These are common requirements there may be additional requirements depending on the bank. Normally the banks will borrow you the money. In total your expenditure including your loan repayments should not exceed 33% of your gross income.
4. will then need to have the property valued, the bank usually arranges this at your cost.
5. Once the mortgage has been approved the conveyancer process begins. Note that as a buyer you are liable to pay transfer and legal fees. This amount various between 8 percent to 10 percent. This process takes about three months or less. Occupation or Ownership takes place only after transfer.
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