After much deliberation and discussion, when you have finally decided to purchase a ‘new home’ for whatever the reason might be, there is a need to seek out help from professionals. Usually home buyers decide to make a purchase decision, if they are looking to expand their family, or want to upgrade to a new address in a better locality.
Well we agree that ‘home buying’ can be a tedious process, however, the gratifying satisfaction that comes along with it can’t be described in simple words or even sentences through a Blog.
Let us help you simplify the nerve wrecking process of home-buying and share some experience that will take load off your shoulders and instead make it an enjoyable phase of your life. Continue reading further, as we aim to compile a comprehensive ‘buyer’s guide’ that includes everything from A to Z and in-between to ease out your asset purchase process.1) If you are not a cash Buyer - Fix Your Mortgage Cap Limit
Before you start your mortgage hunt, be sure how much borrowings you can afford and set a max cap limit, so that you don’t go overboard. It’s not uncommon to get tempted asking for a higher mortgage amount than what you actually need for purchasing your dream home. This could however in the long run lead to additional burden to repay the principal amount with interest, thereby sometimes even leading to defaulting.2) Get a Decent Credit Score
What loan you qualify for and which lender you choose, all depends on your credit score. If you have a good credit score, the chances are that numerous banks & financial institutions will approach you without much resistance. Better ranking means you can even secure a loan at lower interest rates than you would if your score was poor. A good score is given on the basis of the following; your previous track record of payment history, any existing loan if you currently have one; and the length of your credit standings.3) Decision in Principle (DIP)
A Decision In Principle, also referred to as an Agreement of Principle is like a ‘green card’Your Intention to Buy A HOME” that allows you to confidently start your ‘home search’ process. This piece of document is handed over by the lender or the mortgage firm to the borrower stating that ‘in principle’ so much amount of money is agreed to be paid based on the information & documents that the borrower will furnish. Based on this important piece of paper, the seller will be in a better position to make a serious offer and present great home-buying options to you. If you need any intervention organizing a mortgage or securing the DIP from the mortgage broker, our expert team from Luxiador, will be happy to intervene and assist you with the same.
Our reliable ‘home purchase agents’ are suited for the job of helping buyers find the right dream property for their money’s worth. At Luxiador, we believe in making the experience a very personalized affair and thus each home buyer will be appointed a dedicated ‘agent’ who will assist them through the shortlisting phase to the final stage where the buyer moves-in with his family. Our extensive portfolio of home properties consists of villas, apartments, condos, and even townhouses for suiting the needs of different budgets & preferences. Shortlist a few as per your requirements, and we will arrange a site-visit for you at your preferred time & schedule. Our agents will share everything you need to know about the property and you can in-turn ask as many questions as you wish to, without any hesitation. We will also send you a reminder about your viewing 24 hours before it takes place.5) Give us Your Feedback
After you have physically visited the property and spent time touring around the site to check-out the various amenities, features, and location proximity, its time to discuss and deliberate on the same with our expert agents who showed you around. We encourage home buyers to share their honest feedback on what they liked and what they didn’t like about the property. The feedback can be anything such as; the premise was lacking a kid’s play area or there should have been more covered parking in the basement area. As we learn from your feedback, we pass it on to the sellers and property developers, so that required amendments can be made, basis customer preferences.6) Make An Offer
We would love to have you make an offer with us and choose from amongst the multifold properties you visited alongside our agents. At Luxiador, we try our best to simplify the ‘offer making’ process, though as a formal practice, there are certain steps to follow. The first one is to formally write an email to us indicating your interest in purchasing a particular property. We will revert back to the same email and ask you to fill a ‘offer form’ and answer a few questions related to funding your purchase and completing some formalities. The buyer party has to then furnish details of mortgage agreement in principle / proof of cash funds to our reliable & trusted executives.
This can be done via an App and the process is completely secured & safe. If the purchase is made via a mortgage, we will need a letter from your broker stating that you can afford to purchase the property at the given budget. In case part amount is to be made in cash, then we will require proof of bank statements that will justify that you have enough reserves in your bank account. This is a step that’s unavoidable and a part of the due diligence process, which has to be mandatorily undertaken. We would like to draw your attention that though you may have submitted all required documents, our ‘estate agent’ has the option to decline the offer, under any unavoidable circumstances.
If your offer is accepted and your ID proofs are verified, we will issue a Memorandum of Sale and change the status of the property as ‘Under Offer’. This means that the property is almost off the charts and the process of buying is being initiated. All the terms & conditions of the transaction is clearly stated in the Memorandum of Sale which is sent via email to the buyer, seller, and legal representatives.8) Inform Your Mortgage Broker About Purchase Decision
Now that all potholes are smoothened, you need to timely communicate your decision of purchase of property with the mortgage broker with whom you had the arrangement in the first place. The lender may ask for a Mortgage Valuation Report and pay an additional cost to conduct the Home Buyers Report or Building Survey.9) Exchanging Contract
When all the parties involved are satisfied, the finances are lined-up and a date for making the payment is agreed upon. You will be asked to fill the TR1 form which indicates transfer of property from one owner to the other and binding sale. You may also be asked to pay a non-refundable deposit (approximately 10% of purchase price) which you hand over to your solicitor and they will hold this amount as escrow until the contracts are fully exchanged. Now the contract is legally bonded, and the buyer can prepare to move-in. The contract is said to be complete when the ownership is transferred and the solicitor gives the remaining balance of money to the seller. Luxiador will then hand over the ‘keys’ to the buyer and the home is legally yours.