Things to Consider If You Are a First-Time Buyer
Buying a property will be one of the biggest financial decisions you ever make. And, if you are a first-time buyer, then the process probably looks very daunting more than it is exciting. There are many different things to think about when it comes to buying a home which can often lead to confusion. So, if you are thinking about making your first step onto the property ladder, we have created this short guide to help you understand the things you need to consider.
Work Out How Much Money You Can Borrow
Having a rough idea of how much you can borrow will help you work out how much you can afford to pay for your first property and should give you a better idea of your price range when it comes to viewing properties. The actual mortgage product that you decide to take out will then be dependent on how much you pay for the property. It is vital to make sure that you will be able to afford the mortgage repayments before making the decision to make an offer on a property. A great way to gain a better understanding of this is to use a mortgage interest calculator.
There are a couple of things related to your job that are important if you are thinking about purchasing a property. The most important thing is to determine how stable it is. And, if so, do you see yourself staying there for the next few years. These 2 things alone will be something that a prospective mortgage lender will look at and talk to you about before making an offer. One of the other things that you might want to think about is how long it will take you to get to work and if you are happy with the commuting time.
When it comes to choosing your very first property, it's important to know exactly want you want. So, before you start arranging viewings, make a simple list of things that you are looking for in a new property. This could include the number of bedrooms, type of bathroom, type of kitchen and whether you are looking for a property that has a garden.
Do Your Research
Don't just look at 1 or 2 lenders and their mortgage rates, do your research and look around for what’s on offers to make sure that you find the very best deal. Additionally, make sure that you do not just solely focus on the interest rate. Most mortgage lenders charge an arrangement fee, which is generally £995 or more, though this can be added to the mortgage deal most of the time.
Consider The Location
When buying your first property, you need to consider the location. Think about what is going to be the most important to you in the area. Perhaps you have children and if so, then being close to a school would be an important thing for you to consider. Other things would be the accessibility to public transport, how close a doctor’s surgery or hospital is, and how far away it is from your immediate family.
Save as Much Money as Possible
As a first-time buyer, you might be required to put down as much as 20%. If you don't have a savings account then now is the time that you should probably get one set up. Together, we creating a plan of how you are going to save up enough money for a deposit. However, do be aware that you are going to need additional money to put towards other fees like solicitors’ fees, stamp duty, removal costs etc.
Register to Vote
This might seem like a bit of a strange one, but lenders check if you are on the electoral roll at your current address to determine whether your application is real or not. They basically check this as a precaution against fraudulent mortgage applications.
Take Care and Apply with Caution
When you are finally ready to apply for your mortgage product, make sure that you do so with caution. This includes reading all of the small print and avoiding making multiple applications to just to see what kind of offer you will get. Every single mortgage application that you make leaves a mark and can damage your credit score. This can also be seen by other mortgage lenders.