Buying a home can be a daunting prospect, especially if you've never experienced it before. Here's the checklist every first time buyer needs...
Timescales
Set some timescales focusing on whether it is the time to buy. Things to consider include :
- Can you afford to move?
- Conditions of the housing market
- Do you know enough about the area you want to buy?
- Other factors that could affect the move e.g. job, schooling
Deposit
How much you need for a deposit varies. It can start from as 5% of the selling price depending on the lender's criteria.
We recommend to save as much as possible. The more deposit you have the better chance of getting a better mortgage deal with lower interest rates.
Budget
Before applying for a mortgage, work out other costs to check you can afford to move. Budget for the following:
- Mortgage arrangement fees
- Home insurance costs
- Land Transaction Tax (for purchases over £180,000)
- Surveyor fees
- Legal fees (conveyancer/solictor)
- Removals
Remember to consider ongoing costs including:
- Council tax and utility bills
- Furniture
- Maintenance and decoration
Funds for the purchase
Now you know you can afford to move, the next step is to get your finances in order for the house purchase.
- Review your credit history and, if possible, clear existing debts
- Take advantage of schemes such as Help to Buy or Shared Ownership
Agreement in Principle
Now it's time to speak to a mortgage advisor and get an agreement in principle.
An agreement in principle is a declaration of how much a lender is prepared to let you borrow to buy a home. Knowing how much you can afford will help with your house hunt.
Having an agreement in principle will also present you as a more attractive, prepared buyer.
Now you're all set to go house-hunting your first home!
If you feel it's time to move home, we're on hand to guide you through the process. Simply get in touch with us, we're more than happy to help. Why not take a look at some of the recent properties that we've brought to market? Who knows, your next home might just be a click away!