Five first time buyer tips
As a first time buyer, you will not doubt be excited about hunting for a home of your own! Here are our five top tips we think you should think about.
First time buyers – you need to think very carefully about a deposit. This can feel disheartening at times, but make sure you know exactly what you can borrow before you start looking at properties. In general all buyers, not just first time buyers, will need at least 5% to 20% of the selling price of the property. Usually, a larger deposit will mean that more lenders will offer you a mortgage and you are more likely to be offered a better rate with a larger deposit.
Affordable buyer schemes
Whether you are a first time buyer or a mover, you may be able to get financial help through a government home ownership scheme if you live in England and can not afford to buy a home. This money is made available to give people a helping hand onto the property ladder. Your mortgage lender will still need to be satisfied that you will be able to pay the mortgage.
First time buyers may be offered enticing rates by some lenders. Other lenders will show you rates that sound great but have confusing small print. Buying a property is likely to be one of the most expensive things that you do in your life – we really do recommend that you carry out some research and take advice from professional mortgage brokers. We think this is especially important for you to do as a first time buyer.
First time buyers especially, really need to work out what they can afford before they start house hunting. A great way to do this is to put together a budget. Before lending to money to you as a first time buyer (or at any stage on the property market) lenders will conduct strict and vigorous checks to make sure you can really afford the mortgage product you are interested in. They will conduct what is known as a ‘stress-test’ which will look at what measures you can put in place if your circumstances changes. Some examples of these include: redundancy, interest rates changing or if you were to have children. Lenders will ask for proof of all of your income and outgoings. A great tip: have all of this ready so that you have a smooth journey as a first time buyer.
Budgeting for a purchase as a first time buyer is really important. Another really important thing to bear in mind is all of the ongoing costs that you will incur once you have bought your first home. These include:
- Furnishing and decorating
- Council tax
- Insurances e.g. buildings, contents
- Utilities e.g. gas, water
- Ground rent and maintenance charges if you are in a flat
- Landline and broadband packages
- TV license and any TV packages
First time buyers, taking on board our five top tips will make buying your first home a little easier to navigate and hopefully you will enjoy the process! Now search our online agency for your first dream home.