We have rounded up five pieces of advice for first-time buyers ahead of purchasing their new home.
Getting on the property ladder is an exciting time, marking a major milestone in your life. But it can also be scary, and leave you wondering where to start and what to do. From mortgages, saving for a deposit, questioning what house to buy and renovation plans – it can be very overwhelming.
We have broken down some advice for first-time buyers, to give them a helping hand and answer some of their questions:
1) Mortgage calculators and affordability
Ahead of looking for a property to buy, you need to work out how much you can afford. By using a mortgage calculator, you can input your salary and financial situation, to get a rough idea of how much you can borrow.
Mortgage calculators will also give you an idea of how much your monthly repayments will cost and how much you can afford to spend.
Banks such as NatWest and HSBC have a mortgage calculator on their website and will be able to give you an average based on current interest rates. Don’t forget you will need to pay bills on top of this – so make sure you are realistic about how much you can afford.
2) Get a mortgage in principle
Once you have worked out an estimate of how much lenders will let you borrow, you can apply for a mortgage in principle. A mortgage in principle is an official document where a lender says that ‘in principle’ you will be able to borrow a certain amount from them to contribute towards a house purchase.
However, remember that a mortgage in principle is not a mortgage offer or an official confirmation that you have a mortgage. To get that, you’ll need to go through the full application process.
But having a mortgage in principle can be beneficial when you are putting an offer in for a house as it shows an estate agent that you are a serious buyer, and gives you a good idea of how much you can borrow.
3) Speak to homeowners
Get advice from people you know who have bought a home and find out what worked for them or what they would differently.
For example, if you are thinking of carrying out a full renovation while living in a property – this might sound great financially, but speak to others who have done this to find out what it was like living day-to-day with work going on.
4) Get saving
When buying a house, there is a lot to save for. From saving for a deposit, meeting your monthly repayments and kitting out the house – it’s not cheap. And the more money you have behind you, the easier it will be.
Try to set a budget to save every month, and tighten the purse strings where possible. For example, cancel any subscriptions that you don’t use eg. online streaming services or gym memberships and work out where you can save.
5) Don’t be afraid to haggle
Being a first-time buyer puts you in a fortunate position, as sellers who want a quick sale might be open to negotiating prices to get things moving quickly.
Being a first-time buyer you will not be part of a chain, which can often be slow and frustrating. If sellers are in a rush to move, they may be willing to cut the price for a quick sale.
Further reading
Purchases – Oakwood Property Solicitors
WHAT TO DO NEXT
To make a start on the next step in your property journey, get in touch today to book a consultation with a member of our team. Call us on 0113 218 5727 to find out how we can help you.
