Buying your first home can be exciting but also daunting, especially if you are unsure of the processes or what you need to arrange. In this blog, we are going to cover the crucial factors that first-time buyers need to consider when looking to buy their first home. Following this advice will help make the situation seem less overwhelming and daunting.
Manage your finances
Purchasing your first home is no easy purchase, so you need to make sure you consider your finances before you jump to property hunting.
One of the most important financial factors to consider is your budget, there is nothing worse than falling in love with a property and realising you simply can’t afford it. Having a realistic budget before you go property hunting will mean you see the most attainable options and won’t be disappointed!
You should also factor in your bills and council tax, at home these are payments that aren’t as prominent in your life but when you live in your own home, they are unavoidable. Make sure your budget includes expenses such as your bills, council tax and enough for ad-hoc home repairs so that you are covered in an emergency too.
Reduce Credit Applications
If you are applying to a number of lenders for credit, whether this is a loan or a credit card, all in a short space of time then your financial situation will likely be deemed unreliable. Try to improve your credit where you can as far in advance as you can when looking for your first home, as this will make your mortgage application more likely to be approved.
Bigger Deposit, Smaller Payments
If you pay a bigger deposit on your first home, your interest rates and mortgage payments could become a lot cheaper. This would be the ideal situation so we would recommend starting to save as much as possible in order to put as much down for your deposit as possible. Recent statistics from Bankrate show that having a deposit of 15% or more could help you get the best mortgage rates, so the more you can save the better.
Speak to your motor insurer
If you are a driver, your car insurance cost could increase or decrease depending on the area you are looking to move to. We would recommend speaking to your car insurance provider if you have an idea of the area you want to move to, as this will help you understand what your finances and expenses will be like once in your new home.
We understand that buying your first home is such an exciting time and it can make you a little impatient to finally move in, but realistically time frames do change in most cases when it comes to house transactions, so it may feel like a long time but it will be worth it in the long run and patience will definitely be a virtue. After all, it is the most important financial commitment you will make – so it’s better to not rush it.
These are just a few tips that will help elevate some of the stress from buying your first home, but we would always recommend speaking to a trustworthy, experienced conveyancing solicitor. Their expert advice can help ensure that everything involved in your transaction goes smoothly.
At Hill and Company Solicitors, our conveyancing solicitors have years of experience in buying and selling houses. Issues and problems with buying your first home are a result of poor communication, which is why we strive to take away this stress and help streamline it all for you.
First Time Byer - Help Video
What to consider when buying a house