If you are reading this article, it implies you are planning to purchase a home for the first time. Congratulations! This article is here to tell you that your first shopping trip for a home can be a fantastic and smooth experience if you make the right research and preparation.
So, below you will find some of our top tips and things to consider as a first-time homebuyer.
1. How much can you realistically afford?
Possibly the most crucial thing that you should consider when it comes to deciding to buy a house is how much you can afford. This is an important thing to know from the very start of your search because it is going to ensure that you don’t get yourself into any debt later down the line.
By taking the time to work out a property budget that you can stick to for the foreseeable future, you will make sure you get the perfect house for what you can afford as well as being able to afford to pay your bills as well as live comfortably.
2. Don’t hesitate to consider all possible expenses before you purchase your first house
There will always be costs that you have to account for so it would be wise to make sure that you account for all possible future costs.
For example, you will need to account for the proper home and contents insurance, council taxes, water charges, gas and electric. Any repairs, home maintenance or decorating will need to be considered. If you ever intend to lease the property, then landlord insurance will need to be considered.
The cost of living will also need to be considered because even though you can afford the cost of your property, you will also need to be able to live in that area comfortably and be able to eat and keep your home running.
3. Discover first-time homebuyer loan, plan, and credit
It is now time to look at your loan choices because you now have a clear idea of what you can manage. As this is your first purchase of a house, government funding may be available to help you with your purchase, such as Help To Buy, Right To Buy and Shared Ownership.
There is a wealth of resources online about these and other assistance schemes for anyone who wants or needs them.
4. Review your mortgage options
If you decide to take on a traditional mortgage, then you will need to have a good credit rating in order to be accepted for a good interest rate. Also, it is important to note that with most traditional, standard rate mortgages, you will also need a deposit of at least 5-10% of the value of your home.
Alternatively, consider a first-time buyer’s mortgage as these often do not require a deposit and will instead allow you to have a guarantor.
5. Know that it is okay to slow down the process
Finding the perfect first home is an important process, and it takes time. There is no sense in, or need to, rush such a big decision. So, take your time. Make sure you have your finances in order and that you have considered all your options and that you are 100% happy with the property you have chosen.
It’s an exciting decision to purchase your first house. That doesn’t mean it has to be frustrating simply because it’s a huge move. You just have to prepare thoroughly, and you will be able to find your dream home with minimal stress and fuss.
