How do you determine the opening bid?
Now that there are many hijackers on the coast for your dream house, you actually want to do it right in one go. But what should you look for when determining your opening bid? The most important part is of course the mortgage. If you are going to bid, you naturally want to be able to pay for the house. Therefore, calculate your maximum mortgage in advance. Are you planning to outbid? Then read on. From the Hilton Head Island SC realtor you can have the best choices now.
I want to offer above the asking price, does that affect my mortgage?
Yes, this can have consequences for your mortgage. From 2018 you can only finance 100% of the home value. Overbidding is therefore not entirely without risk. The value of the property is determined by an appraiser. This is then also the maximum amount that you can finance on your house. Are you going to make a bid above the appraisal value? Then you have to pay the difference from your own resources. Also keep in mind that when purchasing a home you will be faced with purchase costs, on average about 6 percent. Usually, so not always, the valuation is equal to the purchase price. In any case, you need your own resources for the purchase of the home.
Suppose you have made an offer for a home for 250,000 dollars. The appraiser has set the house value at 240,000 dollars. This means that you can only finance 240,000 dollars and that you have to pay 10,000 dollars yourself from your own resources. But, suppose the house is valued at 260,000 dollars, you can finance 260,000. Because of this you would have 10,000 left for the purchase costs, for example. It can therefore also have a positive effect on you.
Advisors can help you
Are you planning to outbid? Then advisers check your financial situation in advance, so that you can start negotiations more confidently. Calculate your maximum mortgage and then immediately schedule an appointment with advisers.
By stimulating people to make their houses as efficient as possible, the energy bill will eventually be lower. Due to the payback effect, it is therefore justified to disregard 9,000 dollars for the calculation of the financing burden; simply put: you can borrow up to 9,000 dollars extra. For energy-neutral homes, an extra amount of 25,000 dollars can even be borrowed.
The EPC (Energy Performance Coefficient) is used to see how economical a new-build home is. The rule with EPC is: the closer to zero, the more economical the house. So you want the lowest possible EPC. The allowable EPC in new homes is currently 0.4. In 2020, new-build homes are expected to have an EPC of 0. This means that all houses that are built from then on must in principle be energy neutral.
NHG with energy-saving measures
If you want to take out a mortgage with a National Mortgage Guarantee, you must be under a certain cost limit. You are therefore not allowed to spend more than a fixed amount on a house to be eligible for NHG. Your home value may therefore not be higher than this amount.