Guide to Buying Your First Home
Buying your first home can be nerve-wracking.
There’s lots of information out there for everything to go well.
But where should you start?
We’ve created an in-depth guide to buying your first home.
Step 1: Save up money
Before you can move out, you need to save up for a deposit.
A mortgage lender expects a deposit of at least 10% when you buy a house. And the larger the deposit, the more favourable your mortgage terms will be.
As a first time buyer, you’re likely to be looking at a flat as your first step on the housing ladder. A typical flat sells for £191,400 at the time of writing. So, this equates to a deposit of £19,140.
You may need to be creative to save up this much. Try getting a second job to increase your income.
You could also sublet a spare room or move back in with your parents. Cutting down on your living expenses can also make an incremental difference.
Step 2: Decide on your ideal location
Sometimes, your ‘dream place’ is out of your price range. But you still need to decide where to live.
You may need to be pragmatic and find a realistic goal. You can always buy your dream house later in life!
You may also want to consider other things, such as your proximity to your family and friends. Or what transport links are available.
Step 3: Budget for your living costs
Before you apply for a mortgage, you need to calculate what you can afford monthly. You must budget for food, supplies and bills. As well as council tax and service charges.
Review your past spending activities in each of these areas. This acts as a useful benchmark.
And if you currently live with your parents and they cover these costs, you should allow for an increase.
Step 4: Get a Mortgage in Principle
Most experts recommend getting a ‘Mortgage In Principle’ before you start viewing houses.
By combining this with your deposit, you can figure out your budget. And the mortgage may be more or less than you expected.
The main influence on your mortgage in principle is your salary. But dependents, guarantors, whether you’ve declared bankruptcy, and more will influence this.
If you are struggling to get a mortgage, some UK government schemes may make it easier for you to do so. Perhaps speak to a mortgage adviser.
Step 5: Go to viewings
Arranging viewings is one of the more exciting parts of buying your first house.
You should view several different properties that you like the look of. This gives you a perspective on what’s available.
Don’t just think about square footage and aesthetics. There are other things to consider, including:
- The building’s condition
- Parking spaces
- Nearby amenities
- Service charges
- Lease length
- Whether furniture will be included in the sale.
And more.
Step 6: Make an offer on a property
Once you find the property that you love, it’s time to make an offer.
You should communicate this to the estate agent over the phone. They’ll also usually want it in writing, along with a copy of your Mortgage In Principle.
It is common for the sellers to come back with a counteroffer. So, don’t panic if your first bid isn’t accepted immediately.
Negotiation is a key part of house transactions. Be clear minded on the maximum you’re willing to go up to and then keep to it.
After all, there’s nothing worse than overpaying for a property. It can put a strain on your finances for years to come.
Step 7: Instruct a solicitor
You should instruct a solicitor as soon as your offer is accepted. This ensures that things move quickly and the process doesn’t take too long.
Ideally, you’ll have already checked reviews for potential solicitors. This allows you to pick the best one.
You may ask friends, family or colleagues for recommendations.
The most important thing is that they are responsive. Slow response times can jeopardise the property chain, which is not what anyone wants.
Your estate agent will also want the details of your solicitor.
Step 8: Get a survey done and prepare to move in
Congratulations, you’re entering the final steps of buying a house. The end is in sight!
You should get a survey arranged on the house. This ensures that you haven’t missed anything. When problems are revealed, it may prompt renegotiation.
You will also need to complete your mortgage application. A broker or adviser can assist with this. Your lender may want to visit the property to value it, too.
Step 9: Prepare to move in
Get ready for moving day. This could involve buying furniture, if you haven’t already.
And you may need to book a removal company to transport your bed, and other belongings, to your new home.
Last but not least, exchange and completion will arrive. This is when the purchase becomes legally binding.
And on completion day, you’ll get the keys to your first ever home…
