Taking that first step to get onto the property ladder as a first time home buyer can come across as a very daunting task. In our day and age buying a house is seen as the ultimate financial achievement. Many people strive all their lives trying to save enough money to be able to purchase a place they can call home and sadly it’s not getting any easier.
A recent housing market report published on the Independent states that first-time buyers need average deposit of £33,000 to be able to purchase a home. The report also found that the average price of homes is currently sitting at around £207,693 – an all time high which means home buyers have to splash out a whopping 16% of the property price in order to make it their own!
This is why it’s more important than ever to avoid any mistakes and make the correct decisions if you are one of those people in a good financial position to be able to purchase a home.
Our team has put together a nice little infographic outlining a few ‘Must Do’ steps when it comes to buying a house for the first time. Be sure to read on after the infographic if you’d like a little more information explaining each point!
1) Review your credit
As we all know, houses are expensive and require a huge initial investment (as well as continued investment in the form of mortgage payments). There is no point in thinking about buying a home if you’re not in a position to afford one.
2) Save up for a deposit
So you’ve reviewed your finances and found you’re able to afford to buy a home – now comes the hard part of getting all that money together for the initial deposit.
The bottom line is, the larger deposit you put down, the better interest rate you will receive from a mortgage lender.
3) Look for the right home in a good location
When you’re searching for the home, don’t just look at it’s interior, location is just as important. What you want to do is find a location that will suit your lifestyle and personal needs. For example, if you have children, finding a home that is close to a nice school is a big bonus.
4) Get a mortgage
Finding the right mortgage is just as important as finding the right home. There are different types of mortgages ( repayment & interest only) as well as different mortgage rates (fixed & variable). Pick one that suits you. Some extra tips on how to choose the right mortgage include:
- Visit a professional mortgage broker.
- Make sure you have a good credit rating.
- Make use of government schemes such as help to buy.
5) Make an offer
Haggling is essential when buying as most homes will always start above their market value. It’s your job to negotiate with the seller to reduce the price as much as possible. Remember though, don’t bid too low or the seller will think you’re just a time waster. Bidding too high means you will probably lose out on the property in the long run – keep it in the middle.
One great tip on reducing the asking price is to point out any flaws you see while viewing a property. Whether they are big or small is irrelevant, mention them, write them down and when it comes to negotiation time be sure to bring them all up.
6) Surveys & Conveyancing
As the saying goes, it’s better to be safe than sorry. Be on the safe side and get a home survey done on the property you are interested in – RICS is a good option for this. The last thing you want to find out after you’ve moved in is that your new home has structural damage.
Your solicitor will usually take care of all the paperwork. Just be sure to stay in contact with them regularly and ask them to go over and explain any paperwork you are unsure about.
7) Exchanging contracts
The hard part is over, now all that remains is for you to meet with the seller and his representatives to sign and exchange contracts.
8) Moving Day
It’s finally time to move into your new home. A few things to remember include:
- Find a trustworthy moving firm.
- Change your home address for mail.
- Label all your boxes so their easier to sort out when you arrive at your new home!
That just about finishes up are 8 ‘Must Do’s’ when it comes to buying a house for first time home buyers. If our article has helped you in anyway do share it. If you have any questions or would like to give us some feedback, feel free to contact us at any time!