Buying a House

Tips on Buying a House


It is every couple's wish to ultimately own their dream home. The reality is that buying a property takes a lot of time, patience and money. When all that is over and you do finally have your own Place, there are other costs such as decoration, building work and furnishings which will all put a hole in your bank account.
Loans & Mortgages
	Most banks and building societies when deciding whether you are eligible for a loan look for proof of your means. After filling in an application form, they will normally give you their decision within 48 hours. Their decision is usually based on proof of your income, such as your bank statements for the last six months, wage slips for the last three months and credit references.
Types of Mortgages
	*Repayment Mortgage* This is where you pay off the borrowed amount plus the rate of interest every month over a period of anything between 5-35 years. As the years go by, your mortgage repayments decrease.
	*Endowment Mortgage* This is where at the time of borrowing money, you take out an endowment policy for a certain amount. You pay this amount into your bank account, which is left to mature for a minimum of 10 years. In addition to this fixed monthly repayment, the rate of interest on your loan must also be paid. In theory, the money invested should be enough to pay off the remainder of the mortgage at the end of the term, but this is not always the case.
	*Remember! Your home is the most expensive thing you will own, so spend as much time and money as necessary to get the right advice.*
Home Insurance
	You have to have house buildings insurance if you buy a house. The house contents should also be insured against theft, fire etc. The contents should be insured to the value as new, you have to upgrade the coverage every year to keep up with inflation of the house and its contents. Home insurance is essential for practical reasons and to give you peace of mind. An estimate can usually be made over the phone after specific details are given about your home, i.e. location, number of rooms, etc. Payment can be made at one time or in installments over a period of 10-12 months.
	*Standard Home Insurance* This covers fire, theft, storm damage, collision, flooding by water and vandalism of contents in your home. It also covers home entertainment, furniture and glass accidental damage.
	*Extended accidental damage Insurance* This covers all of the above and accidents against carpets and settees and normally costs an extra $50.