Buying Your Dream Home: Advice For First Time Buyers

January 5, 2015


Dream Home

(Photo credit)

Buying your first home is a big deal. The money you spend on your new property, will most probably be the largest financial commitment you will ever make.

Once you have found your dream home, buying it can take a lot of time and effort. It isn’t always as straightforward as just signing on the dotted line; there is a lot more to take into account.

To make sure that investing in your first home goes as smoothly as it possibly can, it is a good idea to ensure you know everything that you need to know. From choosing a property to applying for a mortgage, it is vital that you have all the right information.

For everything you need to know about buying your first home, have a read of this.

What is your budget?

The size of your house hunting budget will depend on how much you have saved and how much you can borrow. The amount you can borrow should depend on how much you can afford to pay back.

Find the place

Once you have found your dream home, don’t rush into anything. Go back for a second and third viewing. Take an objective friend or family member with you for a second opinion.

Take the time to think about any questions you may have, write them down and ask the estate agent. Don’t worry about seeming rude, ask anything you want – what is the neighborhood / area / community like, etc. Find out how much the utilities cost and how much council tax costs too.

Once you are happy you have asked everything you need to, take time to work out all the costs.

Work out the costs

Buying your first property will cost you a lot more than you think. There isn’t just the cost of the property to consider, but also the lenders fees, VAT, lawyers’ fees, etc. Before you do anything, sit down and work out each cost that you will entail and work out exactly what you can afford.

Apply for a mortgage

If you can’t afford to cover all the costs of buying a property yourself, then you will need to apply for a mortgage to cover your costs instead.

Applying for a mortgage may seem a little complicated, but once you know what you are doing, it is very straight forward. The most important thing is to find a company that you are comfortable with, such as Sherwood Mortgage Group. Once you have found the right company to work with, you can then start working on your application.

The amount of money you can borrow for your mortgage will depend on certain factors. Such as your household income, any outstanding debts you have and whether or not you have any children depending on you. It will also depend on your credit history and credit score.

Deal with the legal aspects

Once you have secured a mortgage and put in an offer, you will then need to consult a solicitor. A solicitor is vital for checking that the sale is all legal – things like whether the seller has the right to sell the property that there are no land disputes, etc. will be checked.

The next step is a basic survey to verify the property’s value. Whilst the basic survey is cheaper and somewhat satisfactory, you may be advised to have a more comprehensive survey conducted..