Great guide for those who want to buy a house


Buying a house is to play with millions of dollars that are not yours.

No wonder you think about it several times before you hit.

However, following this guide will reduce the risk of error.

There are a number of things to do to buy a house, whether it is a permanent residence or a summer cottage. Here are the ten points to follow. Then the house business can lead to a new dream home.

1. Оbtain a loan promise from the bank
Before entering the boom market, you should contact a bank or credit institution and apply for a loan promise. Then you go through your and your family’s finances and find out how much the bank wants to lend, writes Hemnet in a large buying house guide.

You get to borrow 85 percent of the house’s value. The rest is the cash contribution that you have to pay for yourself.

A loan promise costs nothing and is valid for six months. Keep in mind that the loan promise is not binding. The bank or credit institution can terminate it if your financial conditions change significantly from what you have been promised. One reason may be that you get reduced income, or higher expenses.

Don’t forget to compare mortgage rates. If you have a loan promise from a bank, you can talk about interest rates with other players in the market to reduce your costs.

For example, banks appreciate whether you are a full-time customer in their bank and at the same time save.

2. Decide what you require of your house and where it is located
Before you throw yourself into the housing community, you should find out what you want and what you want in your vicinity, what does not matter and what you do not want near the house.

If you are not worried about having far to the nearest bus stop, or not being disturbed by the nearby highway, then you may get the house cheaper than you thought.

 Proximity to school and playground.

 Green areas and walking paths.

 Proximity to local traffic.

 Are there food stores or other shops within walking distance? Do you have to take the car?

 Close to social service. Are there medical centers nearby, police or fire department?

 If you live further out of town: How are the roads handled? Does snow removal work?

Other things to decide are how big you have to stay. How many rooms should the house have? Can you divide rooms if you suddenly become more? Should everything be in one plane, or would you rather have several floors? Is it okay if the house needs renovation, or do you want your home to be ready to move into?

With all these requirements, it is time to check seriously for a home!

3. Make a requirement list of things you do not accept with your new home
It is important for you or your family to have a clear list of requirements before you start looking at houses. The list is different from speculator to speculator. It can be so simple that there must be a certain number of rooms, that fiber should be enclosed in the house, or that it should have a special type of heating, or close to school or preschool. The requirements can also be less clear, such as that the bedrooms should be dark, or that the living room and kitchen should be close together.

Acceptance The lowest selling price that a seller accepts at a deal, such as a residential transaction.

Amortization Payment of an existing loan debt. The loan is reduced by the amount you pay.

Amortization Frequency A period of time when repayments must not be made.

Amortization plan A plan for how to pay off your loan.

Annuity loan A loan in which the amortization amount increases as the debt decreases.

Assignment of, for example, land for payment for certain time.

Deductible Expenses that can contribute to tax relief in the declaration by deductions.

Mortgage ratio The percentage that describes how much of the market’s market value there are loans on.

Blancolån Loans granted without collateral or guarantee, often at a higher interest rate than with loans with a collateral.

Accommodation Cost The total cost of your accommodation. This amount includes amortization, operating costs and interest expenses.

The guarantor Person who goes to the castle for a borrower.

Creditors Lenders who have a claim against a borrower. The counterpart is called the debtor.

Mortgage loans Loans with a property or condominium as collateral. Bottom loans give a lower interest rate because this type of loan entails a smaller risk for the lender. Bottom loans can be divided into different parts with different binding times on the interest rate.

Residential property Owning a tenant-owned apartment means owning a share in a tenant-owner’s association and having the right to use the apartment, the townhouse, the chain house or the rest. The right applies to unlimited provided that one fulfills his obligations to the tenant-owner association. When you buy a condominium you do not buy the apartment itself but a share in the association that owns it.

Bound interest / fixed interest rate A fixed interest rate is an interest rate that is fixed for a fixed period, for example one, three or five years.

Operating cost The total cost of operating a cost. What is included is, among other things, the cost of electricity, water, heating and insurance.

Late interest If you do not pay your claim on time, you will suffer an additional fee for breaching the agreement.

Effective interest rate Effective interest rate is the total credit cost (interest and fees) that is stated as the annual interest rate on a loan amount.

Energy declaration Mapping and documentation of a building’s energy use during the use stage.

Debtors Someone who has a debt to someone else.

Down payment A form of advance payment that is given to the seller of a home in connection with the contract being written. Usually, it is 10 percent of the purchase price.

Cash contribution The part of a loan to be paid in cash. The majority of lenders have a requirement that at least 15 percent of the purchase price be paid in cash.

Credit check An investigation and assessment of a person’s financial situation and ability to pay and something all companies that grant loans and credits must do.

Credit information Collected financial information about a person or a company.

Purchase letter is a legally binding act that regulates and defines the ownership of a specific property.

Purchase price The total amount paid on a purchase.

Teamwork A courtyard is proof that you own a property

Loan promise A prior notice from the lender, where they state how much you can borrow for a future home purchase. A pay promise is usually only valid for six months, provided your financial situation does not deteriorate in the meantime.

Market value The price market is willing to pay for a particular product.

Mortgages Mortgages are a proof of mortgage in a property and serve as a security for a loan. Say you should buy a house and need to borrow a large amount of money. You then need a security and it is usually part of the house. This security is called a mortgage deed, because you pledge part of your home with the bank.

Variable interest rate An interest rate that changes over time. For most banks, this means that the interest rate is tied for three months at a time.

Servitut A concept for the right a property has to use in a certain way another property.

Debt securities A debenture is a written act stating that you owe a person or company money.

Debt restructuring To get your debts written off or written off.

Final price The final price for a home.

Interest rate The interest rate the Riksbank takes when it lends money to the banks in the short term.

Tax value The value of a property that forms the basis of the property tax.

Land leasehold leasehold means that someone else, usually the municipality.

4. Go on views – go on many views
Think wide and free. Even if you know the city or municipality you want to buy houses, there are certainly areas you never visited. You may also want to check in the neighboring municipalities, provided that you can go to work or school without any problems.

Check out the range of one of the major home buying sites like Hemnet or Bovision. You can also search the various brokerage firms. Many local brokers have very good track of the supply in their region.

When you find one or more items that seem nice, you should of course go on shows. Take the list of requirements you have that you do not want to compromise on. Be clear to the broker in place if you are not interested, maybe she or he has an item in progress that matches your requirements better?

Don’t be afraid to noble many houses, they won’t end. It always comes more and you should feel that the house is perfect for you and your finances before you register your interest. But before doing so, there are other things to consider when buying a home.

5. Read on if the house – carefully
When you feel that the house is right and that the price is within the scope of your loan promise, it is time to review all the facts about the house: How the house is built, what foundation it has, heating, operating costs and what is included in the house.

Are there any mortgages? Some easements? It may be that the neighbor has the right to use your driveway to get home, or that the power line goes through your new property.

 Read the energy declaration. Keep in mind that the heating costs during the winter months can be very high if you only have direct electricity. And lower if the house is heated with, for example, mountain heat.

 Count on what happens if interest rates go up. Are you able to handle a borate rate of 5–7 percent?

 Review any renovations that should or must be made.

 Make a budget. How much money do you get after the fixed and variable costs are paid?

6. Check out the neighborhood – visit again
If you like the house and want to move on, you should expose it to a “stress test”. Go back to a new show and see the house another day, at a different time when it may be dark, other weather, or the sun is in another weather. Check around the neighborhood and talk to neighbors and get a closer view of the neighborhood you are thinking of moving into.

7. Then you invite a house you want to buy
When you have been on shows, examined the house and decided that it is the right one, then it is time to go to action.

In most cases, there will be bidding on the property. There are several different strategies for winning a bid. Either raise with the least possible amount and sail on the bidding and hope that the competitors get tired. Or to cut directly and hope that the other speculators will be discouraged by your determination.

Remember, however, that the seller is free to sell to whom they want, it does not have to be the highest bid that wins. In addition, determine a maximum amount that you are willing to pay. Don’t go over that limit. Always be prepared to drop the bid.

Housing bidding is regulated by the Real Estate Agent Inspectorate. A bid is not binding even if it is submitted in writing. Only when the purchase contract is signed will the purchase be legally binding. Before that, both buyers and sellers can change without the other party being able to make any demands.

The broker should give all speculators information about how the bidding should go, as well as any wishes from the seller.

The seller has free trial and decides which bids are interesting. Therefore, the broker must forward all bids to the seller. The seller chooses the one who can buy, it does not have to be the one who offers the highest.

After the bidding, the buyer has the right to take part of who has bid and how much. The buyer must then be able to contact the other stakeholders to make sure that the bidding is correct.

8. I got the house! What happens now?
After winning a bid, it’s time to sign a contract. This often happens at the broker’s office. It is only then that the deal is done. At the time of the contract, you must agree on a number of things:


 The existence of reservations, such as the bank’s loan terms, the sale of your existing home or the result of inspection. The real estate industry recommends a so-called open clause on inspection conditions.

 Down payment house. Used to be 10 percent of the purchase price. The bank usually settles with a down payment loan that is repaid, plus interest, on the day of entry. Many wonder when the down payment is paid for house purchase. The answer is when the contract is written.

The website Mäklarkoll is a free service where you can find and compare brokers in the exact area you live in. Here you can take part of the collected data on housing sales and see different top lists. You can then choose the broker you want to be contacted by.

9. Who does the survey and why?
As a buyer, you have a duty to investigate, so you should examine the house from roof to floor. The normal thing is to hire an independent surveyor who does the job. Then you fulfill your investigation duty. The inspector is responsible for reporting large and small faults and deficiencies in the house and making a risk assessment. But an inspector cannot be held responsible for what she or he does not see.

If you suspect mold, or are particularly sensitive, you can hire a mold dog for an additional cost.

Expect it to take three hours for an inspection. If you are a member, you can ask questions to the surveyor while the work is in progress. An inspection usually costs SEK 8,000–10,000.

You can inspect the house before you have signed a contract or after. The danger of doing so before contract writing is that the seller can back off sales and so you have paid an inspection unnecessarily.

If you inspect the house after the contract writing, the contract must state that it must be done within a reasonable time and what happens if major errors are detected. Should the price be lowered? Or should the seller fix the errors? There are standard solutions that make it safe for you as a buyer.

10. What is law and mortgage?
Law enforcement is the proof you have because you own all or part of your house. The National Survey of Finland manages the handling of land traffic. The cost is a registration fee and a stamp duty. The stamp tax is 1.5 percent of the purchase price for the house. The fee is SEK 825. For a villa of 4 million, the law reserve therefore costs SEK 60,825.

A mortgage letter is a security for your loan that you transfer to the bank. This means that if you cannot pay, the bank will require you to sell the property.

New mortgage certificates cost 2 percent of the amount of the mortgage bond, plus a fee of SEK 375. It is very rare that there are no mortgages on properties on the market. When you buy a house you take over the old mortgage letters, but you may need a new one that covers the difference from the existing mortgage letters to as much as you can borrow as a bottom loan.

So if you need a mortgage bond of SEK 1 million, it costs SEK 20,375 plus the bank’s fees.

 Down payment house: It is the 10% you deposit in connection with the contract writing. If you do not have the money you usually get a down payment loan from the bank. The money is deposited on a client funds account to protect sellers and brokers if something goes wrong.

 Cash deposit house: In normal cases you will borrow 85 per cent of the house price from the bank. The rest, 15 percent, is the cash bet you have to pay for yourself.

11. Last chapter: Pay and take over the house
The transfer of the property usually takes place on the seller’s bank. Sellers, buyers and brokers go through the contract and make sure everything is correct. The purchase price is transferred to the seller, the purchase letter is signed and witnessed. The mortgage letters belonging to the house are taken over by you. You get all the documents and finally: The keys to the house!

 You get all the fixtures, ie baths, sinks and stoves, if you have not agreed with the seller about something else.

 Garden tools such as lawn mowers, water hoses and tools belong to the seller, as well as the garden furniture, if you do not agree to take over or buy them.

12. Should I pay brokerage fees when I buy a house?
No. The seller pays the broker.

 What are the house purchase fees? The buyer pays, in addition to the house, law enforcement, mortgage deeds and inspection. Expect costs for the purchase of houses landing around SEK 100,000.

 The seller pays the broker and other costs in connection with the sale, and ensures that the property is emptied and cleaned for your occupancy.

13. How much tax do you pay when selling a villa?
If you sold a home in connection with your house purchase and made a profit, you have to tax for the profit. House sales tax is the same as income from capital.

According to the Swedish Tax Agency, you must declare the sale the year after you signed the purchase contract, not when the purchase was completed.

You figure out profit or loss this way:

Take the sales price. Determine how much you paid for the villa or townhouse, including court costs and any mortgage charges in the property.

You should also deduct for sales expenses and expenses such as expenses for insurance against hidden errors and energy declaration and some expenses for homestyleing. Improvement expenses are deductible for new, altered or remodeled and improved repair and maintenance. (Normal maintenance is not deductible.)

If you have deferred the profit from previous sales, this must be added to the profit, or the loss. The profit is declared with Appendix K5. Improvement expenses are filled in the help form SKV 2197.

If you get a profit, you pay 22 percent tax on the profit.