Embarking on the journey to buy your first home can be as thrilling as it is daunting. With a plethora of steps, checks, and considerations, the process can seem overwhelming. Fear not! We’ve broken down the essential steps every first-time buyer should be aware of, making your path to homeownership a little smoother.
Before You Start House Hunting
Understanding the Market and Your Finances
First and foremost, recognise that finding the perfect property is not an overnight task. It could take anywhere from six months to a year, so patience and thorough research are your best allies. In an ever-changing market, familiarising yourself with the current buying process is crucial. The government offers a comprehensive guide on buying a home in England and Wales, which is a great starting point.
Contrary to popular belief, a massive deposit isn’t always necessary. Many lenders are comfortable with a modest 5% deposit, and some institutions, like Skipton Building Society and Barclays, even offer products allowing first-time buyers to borrow up to 100% of the property value.
Financial Preparation
Before diving into property listings, consulting with a mortgage broker can provide clarity on how much you could borrow. Knowing this upfront not only gives you a budget to work within but also reassures estate agents of your seriousness. Preparing the necessary documents for your mortgage application, such as ID, proof of income, and any other financial commitments, will streamline the process.
Exploring Home-Buying Schemes
Don’t overlook the various schemes designed to assist first-time buyers, like the First Homes scheme or shared ownership options. Organizations like SOWN can offer guidance on these options.
Prioritise Your Needs and Wants
It’s vital to differentiate between your “needs” — non-negotiable elements like a parking space — and your “wants,” which you’re willing to compromise on, such as an extra bedroom. This clarity will refine your search and decision-making process.
The Hunt for the Right Property
Conducting Effective Searches
When browsing online listings, prioritise those that provide comprehensive ‘material information’ about the property, including taxes, parking availability, and flood risk. This information is invaluable and can save you from future surprises.
Viewing and Evaluating Properties
Seeing a range of properties within your budget is essential. An in-person visit can often reveal whether a property truly meets your needs or if you’re potentially settling for what you think you want. Visiting the property at different times can offer insights into the neighborhood’s dynamics, such as noise levels and parking situations.
Before Making an Offer
Investigating the Property Further
Utilise resources like Rightmove to check the property’s price history, which can indicate its value growth over time. For leasehold properties, be aware of maintenance/service charges and any restrictive covenants that could affect your living conditions.
Preparing for Ownership
Ensure the property’s utility costs are manageable by checking the EPC rating and ask for any relevant safety certificates. If renting, align your move to avoid overlapping costs.
Securing the Deal
Making an Informed Offer
Armed with an ‘agreement in principle’ from your mortgage broker, you can make a justified offer. Being a first-time buyer often puts you in a favorable position to negotiate, especially if the property has been on the market for some time.
Choosing the Right Legal Support
Select a solicitor or licensed conveyancer experienced in transactions like yours. Preparing necessary checks in advance can expedite the process once your offer is accepted.
Finalising Your Purchase
Once your offer is accepted, ensure the property is taken off the market. Prompt your legal representative to carry out essential searches and arrange for a home survey to uncover any potential issues.
With the survey in hand, you may renegotiate the purchase price if necessary. Before the exchange, ensure your deposit funds are in order and book your removals with a reputable company.
Finally, ensure the mortgage funds are ready for completion day. Once the property is yours, diligently file all paperwork for future reference.
Buying your first home is a monumental step. With the right preparation and understanding, you can navigate the process confidently and make informed decisions leading to your dream home.