Looking for your first home can be an intense experience. With so many things to think about, people often don’t know where to start and even when they do, it’s difficult to remember everything they need to know. Here are six quick tips that can help you on your way to securing your first property with the least amount of stress possible.
- The More You Save The Better
So many people assume that you need a 20% deposit to even be considered for a mortgage. This is a myth. You will need between 5%-20% deposit to be accepted for a mortgage. Saving more than 5% will give you access to more affordable mortgages on the market.
2. Budget For Other Costs
There are various other costs that need be considered when purchasing a property:
- Survey costs
- Removal costs
- Stamp duty
- Building insurance
- Solicitors fees
- Interior design/decorating
- Mortgage payments
- Valuation fees
3. Consider Home-Buying Schemes
Home-buyer schemes can be a great way to get your foot on the property ladder. The most popular schemes are:
- Shared Ownership Scheme
- Help to Buy Scheme
- Right to Buy Scheme
4. Use Mortgage Comparison Tools
Mortgage comparison tools are there to find you the best deals for your circumstances, and to save you time doing it. Popular mortgage comparison tools include:
- Money Supermarket
- Compare the Market
- Money Saving Expert
5. Leasehold vs Freehold
Purchasing a freehold property means that you own the property and the land that the property is built on, whereas purchasing a leasehold property means that you own the property but not the land that the property is built on. Essentially, with a leasehold property you are renting from the freeholder for a period of time that could be years, decades or centuries.
It is important that you know exactly what you are getting into when purchasing a leasehold property. If the lease is nearing its expiry date, then you have the option to either sell your property or renew the lease which will come at a substantial cost.
6. Do You Own Research
Never just rely on what you are told by an estate agent. It’s essential that you do your own research from comparing mortgage rates to learning more about the location of your potential property. The more you know about the buying process the more prepared you will be when you finally get the keys to your first home.
Buying your first home is a great experience when you know what you need to do. By following these quick tips, you can avoid unexpected expenses and think about how you will make your new home your own.
T K Williams-Nelson