What to Plan & Prepare When Looking for Your First Home
There are a few processes in life as exciting as buying your first home. It is an amazing feeling to get on the property ladder and have a place that is totally your own, but the house-buying process can be arduous and confusing, particularly for first-time buyers who have not gone through the process before, and who may not know the ins and outs of mortgages, whether they need an asbestos survey and so much more. Fear not, though, as this post will guide you through what you need to plan and prepare for.
Saving for a Deposit
The biggest challenge that people face when buying for the first time is saving for a deposit, especially if they are currently renting. The minimum percentage of a property to get accepted is 5%, but it is generally recommended that you save 10%+ so that you can get better rates. Additionally, keep in mind that you should not put every penny you have on the deposit as there are numerous other costs involved, you will want to have some savings and ensure that you can comfortably cover the mortgage payments and bills each month.
Savings Accounts & ISAs
You also want to put your money for your deposit in a place that will grow the most. It is worth looking into Help to Buy ISAs and Lifetime ISAs as these are both products that are ideal for first-time buyers and could make it a lot easier for you to get your foot on the ladder.
Looking for the Location
The location of your home is as important as the property itself. You need to think carefully about your location and find somewhere that is affordable but practical for your lifestyle. It is a good idea to look for areas with new homes for sale as these can be affordable and it is not too hard to find these areas with developments available. When viewing a property, you should always spend time in the neighbourhood and try to spend time there at different times of the day.
Applying for a Mortgage
Applying for a mortgage is a process that can cause a great deal of stress and this is understandable. You want to make sure that you are in a strong financial position with a good credit score before applying.
Get a Mortgage Advisor
It is advisable to get the help of a mortgage advisor when trying to secure a mortgage as a first-time buyer. They will be able to advise you on what you can afford, get the best offers for you and guide you through the complex financial and legal aspects of purchasing a property. Additionally, using a money saving mortgage calculator can help you estimate monthly payments and compare different mortgage options to find the best deal for your budget. This will make the whole process a lot easier and could also help you to get the best possible mortgage.
Buying your first home is an exciting time, but it is also daunting and complex so this post should prove to be useful.
This is a collaborative post.
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