So, you’ve got your eye on that dream of becoming a homeowner, but you don’t know where to start. Don’t worry, we’re here to help you out! The housing and mortgage market can be really confusing when it’s your first time buying a house. That’s why it’s vital to do as much research as possible yourselves, but also enlist the help of an expert in the field. With the right knowledge, preparation and help, you can make your dreams come true!
To make the house-buying process less daunting for first-time buyers like you, we’ve put together some handy tips and advice.
Let’s start with the basics: who exactly is a first-time buyer?
Well, it’s not as straightforward as it seems. Different lenders and the government may have their own definitions. But essentially, if you’ve never owned a home before, congratulations—you’re a first-time buyer! This applies to both individuals and couples. If you’ve owned a commercial property that wasn’t a home, you still count as a first-time buyer. However, if you’ve owned any type of residential property before or have been bought a home by your parents, you won’t qualify. Buy-to-let landlords are also excluded.
Now, let’s dive into some tips on how to buy your first home:
- Research, research, research: The internet is your best friend here. Gather information from housing experts, mortgage advisors, and other first-time buyers who have gone through the process. Learn about the housing market, understand the timeline of buying a property, know your credit score, explore different areas, figure out how much deposit you need, understand mortgage rates, consider additional costs, and keep an eye on house rates in your desired location.
- Get your credit report. We recommend CheckMyFile. There’s a lot of information contained in these reports so make sure it’s all correct. You’ll also come to understand whether there’s anything in your report that is likely to become an issue when applying for a mortgage. If in doubt, speak to a mortgage advisor for some guidance.
- Save like there’s no tomorrow: Saving as much money as possible is vital for first-time buyers. Beyond the deposit, there are hidden fees to consider. You’ll need to budget for solicitors’ fees, mortgage fees, surveys, moving costs, repairs or renovations, furniture, home insurance, and possibly stamp duty. Saving more than you think you need will help cover unexpected expenses. It’s hard to pinpoint an exact amount, so save as much as you can.
- Look for houses under budget: Although at the time of writing, house prices are falling, the average house price in the UK is still very high, so it’s wise to consider properties below your maximum budget. Don’t be afraid to negotiate the price if you’ve found the perfect home. Research similar properties in the area and use any defects found during surveys as leverage for negotiation. Remember, this is a significant investment, so don’t settle if you don’t have to.
- Keep your cool: Falling in love with a house is great, but try to remain level-headed. Avoid acting overly eager or emotionally attached during negotiations. Take time away from the seller or estate agent to discuss your thoughts with someone objective. They might spot things you’ve missed due to excitement.
- Don’t hesitate to ask for help: It’s okay to ask for assistance when you feel overwhelmed. Speak to a mortgage advisor to find the right mortgage for your situation. We can also help with things like putting an offer in, valuations etc. A conveyancing solicitor will handle the legal aspects of buying a property and help you navigate potential red flags.
- Don’t lose hope: Challenges and delays are common in the house-buying process. Stay positive and remember why you started this journey. The process can take anywhere from a few months to over a year, but it will all be worth it in the end.
Whether you’re currently renting or living with family, it’s never too soon to start preparing for homeownership.
Remember, becoming a first-time buyer may have its hurdles, but with the right knowledge, support, and determination, you’ll be holding those keys to your new home before you know it!
