You are ready to make the leap from your family home or out of your rented accommodation and have probably started to look around at what is available on the market. Buying your first home is a really exciting time, but there is a lot to take in as you will no doubt soon discover. Which is why today we want to share with you 5 tips for buying your first home.
Save as much as you can upfront
You need to save as much as you can upfront, so that you have a good deposit to put down on your property, along with the funds that you will need to move.
As a first time buyer, saving regularly every month will support your mortgage application as your lender will be able to see that you are responsible with your money and that you can afford to save a certain amount each month.
The savings should add up to a good deposit allowing you to get the property that you are looking for. You should also have money for the legal costs of buying a home, funds for moving costs and then any money that you will need to decorate and furnish your new home.
Arranging your mortgage
Most of us need to arrange a mortgage to buy our homes, and this can seem quite a daunting prospect when you first look into. It is a large sum that will be borrowing, and there can be so much jargon surrounding mortgages. However, it is worth taking this step before you commence your property hunt to ensure that you can secure the funding that you will need.
You can expect your mortgage lender to take you through your current income and expenditure in order to build up an accurate picture of your finances. They will also run a credit check. This will allow them to give you an idea of how much you will be able to borrow from them, which when you factor in your deposit, will give you a guide to how much you can offer on a property.
They will then be able to share with you some figures around what your monthly mortgage costs are likely to be, whilst taking into account the typical APR. This will give you an idea of your potential costs to ensure that you are comfortable with them.
Make a list of your requirements
Now that you understand the numbers and costs, you can begin your property search. It helps to first make a list of your requirements to ensure that you have the essentials covered.
Many people prioritize location over the home itself, and if this is the case for you, you will want to carry out some research around the neighborhood that you are looking at. Check that it has the amenities that you need it to, look into any plans and developments around the area and think about transport and commuter links if that it relevant for you.
Once you are satisfied with your chosen area, you can narrow down the properties available by referring to your list. You might need a certain number of bedrooms, you might want a kitchen dining area or perhaps a large backyard is key for you. We all have different wish lists when it comes to property hunting, so stay true to yours in order to ensure that you view the homes with the most potential for you.
Be prepared to carry out some work
You might find that in order to get the right home, you are going to need to carry out some work on the property yourself. It is worth being prepared to do this if it ticks many of your other boxes.
For example, if you spot a home in the perfect location for a good price, think about what could be done in order to make it work for you. Could you extend on the plot available? Could you knock rooms through into one to get that large living space that is key to you?
There might then be some budget friendly renovations such as removing fireplaces, changing your front door or updating your bathroom that you could carry out in order to create your dream home.
Make your offer
When you are confident that you have found the home for you, you can make your offer.
Be sure to point out to the real estate agent that you are a first time buyer so there is no chain below you and that you have your deposit and mortgage funding in place as this can be attractive to vendors.
Happy house hunting!
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