Buying Your First Home
Buying a home for the first time can be a daunting prospect. Before even seeing what’s out there and arranging to view properties, it’s important to be prepared and to understand the process.
Saving a deposit
The first step is to save a deposit to put down on a home. The more you have, the better your chances of obtaining a mortgage and getting a good deal. It will also enable you to keep your monthly repayments down.
It could be saved up over a number of years, or you may be lucky enough to join the large number of first time buyers who are helped with a deposit from family members. Current statistics show that it takes the average young family 12 years to save a deposit worth 20%.
Getting a mortgage
As a first-time buyer, you’ll need to arrange a mortgage to finance your property purchase (unless you are fortunate enough to be able to purchase a home outright). Mortgages are a loan from a bank or building society repaid with interest, and for a term lasting up to 40 years. You can either talk to your bank or an independent mortgage advisor to get advice on how much you can afford to borrow and what your monthly repayments will be. Once you have this information, you can start to look for your first home.
Finding a property
You need to consider what sort of property you want to live in, what you can afford, where you would like to live and what local amendites are important to you. For example if you don’t drive it will be essential to be close to public transport links, and of course you need to consider travel time to work and the expense incurred. With literally hundreds of properties for sale in your chosen area, there will be many other factors to consider to help you narrow down your search.
Your budget
You may want a large property but you’ll have to consider your budget and what you can afford. You need enough disposable income for other things in your life such as food, going out, leisure activities and, of course, bills.
Property type
Your budget may not allow you to live in a detached property, but it’s worth remembering that once you’re on the property ladder it will be a natural progression to move into a larger property should your circumstances change and you have to start somewhere! In fact, many first time buyers compromise to get on the ladder. It’s important to keep an open mind and look at all the options.
Location
Some areas are more expensive than others, but don’t discount the cheaper areas. Instead, think about where you work, whether you need to be close to schools, local public transport links and amenities and the price bracket. There are nicer parts in cheaper regions, so you may well find something you love where you least expect it!
Where to look
The first thing you can do is talk to your local estate agents, tell them what you’re looking for and register your interest. This way, as soon as a property is listed for sale you’ll get a phone call from the agent inviting you to view it, rather than spotting it yourself online. Otherwise keep you eye out on the property portals to see what’s available.
Arrange a viewing
Once you’ve found a property you like the look of or an estate agent has let you know of a suitable property, it’s time to view the property at an appropriate time – preferably during the day so you can see everything and see it in natural light. It’s also worth taking a friend or family member with an eye for detail.
If you think the property could be for you, consider going back at different times of the day.
Getting a mortgage
If you decide to make an offer and it’s accepted, you’ll need to consider your mortgage. Hopefully you’ll already have a deal that has been flagged as suitable, and so it should be just a case of putting in the mortgage application.
Don’t rush the financing side of buying a home, because a mortgage is a big financial commitment. Get the right advice and make sure you have everything in order to avoid any delays.