If you are looking to buy your first property, it is not uncommon to feel a mixture of excitement and panic. In this guide, we will outline the basics of how to get started buying your first home.
Can I afford it?
The first thing to do is assess what you will need to buy your property. First time buyers often come in with a 10% deposit, so it’s important to calculate roughly how much you can borrow. You need to determine whether you can afford the long-term commitment and check that your credit score is up to scratch. It can be beneficial to get a mortgage decision in principle (DIP) to give yourself a good idea of where you stand.
What can I do to increase my chances?
There are various practical steps you can take to improve your likelihood of being approved for a mortgage. Consider the following:
- Work with a mortgage broker to get expert advice and access to the full market of mortgage products.
- Check your credit score and see if there is anything you can do to improve your score.
- Check eligibility for government schemes like help to buy, lifetime ISA and the mortgage guarantee scheme.
- Build a big deposit to give you access to competitive mortgage rates.
How can I build a deposit?
To start saving for a deposit, you need to budget for your daily life and avoid unnecessary expenditure. If you choose the government’s lifetime ISA scheme, you could have your deposit topped up with a bonus from the government. You could consider money-saving challenges to boost your motivation and even start a side hustle to boost your income.
How much money will I need?
There is no ‘cheap’ way to buy a home, and there are various other costs in addition to saving for a deposit. Here are some key costs you must budget for:
- Conveyancing fees
- Homebuyer survey
- Valuation fee
- Land registry
- Stamp duty
- Mortgage broker fee
- Moving costs
- Building insurance
What is the process of buying a new home?
There may be several months between finding a property and moving in. Here is a brief outline of all the steps involved:
- Approach a mortgage advisor (if you want to work with one)
- Get an agreement in principle so you know your approximate budget
- Start viewing properties to find what you want
- Make an offer
- Once your offer is accepted, instruct your solicitor to work on your behalf.
- Submit the mortgage application to the lender
- Wait while the lender and underwriter processes the application
- Have a surveyor carry out a property survey on the potential home.
- When your mortgage offer comes in, check over the paperwork.
- Confirm a date for completion with solicitor
- Exchange contracts with solicitors and pay your deposit
- Sign the transfer deeds and solicitors will request the mortgage funds
- Receive the title deeds
This is a very basic overview of the process – there is lots more detail and points where you may encounter difficulties.
Get expert help to make everything easier
An experienced mortgage broker is very familiar with the entire process described above and can offer support and guidance at every stage. PBS Mortgage & Financial Advisers are your mortgage experts in Lancaster, Lancashire and help you throughout the journey as a first time buyer. Give us a call on 01524 888877 or email advice@pbsfinancial.co.uk to find out how we can help.
