After years of dreaming, house-hunting and saving, you’re finally ready to step out on your own as a homeowner. But what do you need to know?
Buying your first home is one of the biggest investments you’re likely to make in your lifetime. It’s not just a monetary investment but also an investment of your time. Knowing exactly what to do for your first purchase isn’t always easy but plenty before you have, meaning there’s a lot of advice to heed.
Here are some top tips that every first-time buyer should hear before making the move.
1) Have a set budget & stick to it
Your budget isn’t just for your home. Other costs involved with moving on top of your deposit and then mortgage include surveying costs, solicitor’s fees, stamp duty, moving costs, any urgent work that may need doing and all the bills. This is not an exhaustive list and not all will apply to everyone but by factoring in these costs through the budgeting process, financial worry is less likely to ruin your move. Set a realistic budget matched to your income and then stick to it!
2) There are Help to Buy Scheme’s that are really helpful!
Many will cite saving a large enough deposit as the main obstacle to buying but help is at hand. In order to eligible for the help to buy scheme, you must: Have a deposit of at least 5%, be looking to buy a home worth £600,000 or less (different limits apply for Help to Buy ISA’s) and be purchasing a property you intend to live in most of the time (i.e. not a property you intend to let out or use as a second home).
3) Mortgage madness
Many factors affect the choice you’ll make in a mortgage as there are many different deals to choose from. Opting for a fixed rate mortgage will give you peace of mind. You’ll know and be able to budget for monthly payments but can miss out on savings. Variable rates move with the interest rate. This means there are savings to be had but unexpected increases to your mortgage can also happen. Speak to PDR Property Lawyers today for more advice on which type of mortgage is right for your situation.
When seeking advice, you may hear the term ‘Loan to Value’ (LTV). This is simply the ratio of the amount of money (mortgage) you borrow to the value of the property, e.g. if the property value is £100,000 and your mortgage is £90,000, the LTV would be 90%.
4) Should I go with my estate agents solicitors?
This is a frequently asked question by many and the common answer is no. Your estate agent will offer to choose a conveyancing lawyer for you and it’s important not to feel pressured into going with their suggestion. As appealing as some of their offers may be, always ask for a written quote so you can compare with other conveyancing lawyers is an essential top tip. Trust in an experienced party, such as ourselves who will give you peace of mind.
5) Take your time, don’t make any rash decisions
The last thing you want when buying your first home is to get overwhelmed and end up making a decision that you’ll come to regret or that financially hurts you. It’s easy to get caught up, overwhelmed or stressed, but buying a house is a long-term commitment which comes with huge responsibility. Find time to browse around, make a Pinterest board with some first-home inspiration and really think about what it is you want from your home. Starting a spreadsheet to keep all your budgeting, contacts and progress together in one place can be extremely useful.
Now you’re well on your way to buying your first house the next step is contacting a trustworthy, experienced and credible conveyancing contractor to help smooth out the process. You’ll soon be able to enjoy one of life’s champagne moments; receiving the keys and settling into your first home.
If you’re in the process of buying your first home, or you are selling and moving to pastures new, get in touch with us today and one of our team will be able to assist you with your property.