The prospect of buying your own home, especially for the first time, is both an exciting and a daunting one. Unfortunately, it’s also a lot longer and more complicated than many new buyers realize, with all sorts of complex legal documents to read, applications to fill in, and financial hoops to jump through. Don’t worry, though – you can take each stage one at a time and soon see some progress. To give you a better idea of what to expect, here is a quick overview of the process.
To purchase a property, you will normally need to deposit at least 5% of the purchase price. However, try to save up a larger deposit if possible because this will enable you to get better mortgage rates when the time comes. People who are struggling to build up enough of a deposit for their first home might want to consider one of the government’s help to buy schemes.
Before you begin viewing houses, it’s important to have a realistic idea of your budget. You can speak to mortgage providers to find out roughly how much money they would be willing to lend you, then add that to your deposit for a rough total figure. The amount a lender can offer you will vary according to a number of factors, such as your income, outgoings, deposit, and credit score.
This is the fun part! Once you have a budget in mind, you can start looking at houses to find one you like. Remember to write a list of all the different factors you need to check and don’t be afraid to ask the estate agents any questions you have. Buying a house is a huge commitment, so you want to be sure you choose the right one.
After you’ve found a property you love, you can put forward an offer to buy it. You can, of course, make an offer that’s lower than the asking price, especially if the house has been on the market for some time. Telling the estate agent that you’re a first-time buyer with no chain can also work in your favor.
Choosing a mortgage is one of the trickiest aspects of buying a home because there are so many different types out there. The best advice is to speak to a professional mortgage advisor to work out the best for you. At this stage, you should also get a survey done on the property to flag any issues it may have.
This is the point at which the purchase becomes legally binding, so be sure to work with reliable Conveyancing Solicitors who can explain all aspects of the contract to you in a clear manner. This is also the stage at which you’ll actually pay your deposit.
Congratulations, you just bought your first home! Time to book a moving van and start packing…