Being in a position to buy your first home is a significant milestone – so well done! But understanding the ins and outs of the process isn’t always easy. From grappling with the financial side to navigating the purchase, careful planning is essential to ensure you make the best choice for your needs and budget. Here’s what to look out for.
Assessing your financial readiness
The first step should always be to properly understand your financial position. Start by calculating how much you can afford, not just for the property itself but also for associated costs such as solicitor fees and moving expenses.
A mortgage deposit of at least 5-10% of the property’s value is usually required, though a larger sum can help you secure better terms. It’s also worth considering how different monthly repayments might affect your lifestyle.
For help, speak to a mortgage advisor who can guide you through the available mortgage products, taking into account your income, credit score and other relevant factors.
Choosing between new build and older properties
One major decision facing first-time buyers today is whether to buy a new build or an older home. Both have pros and cons.
You can expect modern amenities, better energy efficiency and minimal maintenance requirements with a new build. Many developers offer schemes like Help to Buy, which can be attractive to first-time buyers. But you’ll have to be cautious of potential drawbacks, such as limited space or new-build premiums, which may mean the property loses value once you’ve bought it.
Older properties usually offer more character, larger rooms and established neighbourhoods, but they may come with greater repair and maintenance costs. It’s always best to factor in the potential expense of renovations or updates, such as rewiring or damp-proofing. But there’s often a better chance of properties increasing in value with older homes.
Compare what these different types offer and think about what works best for your current and future needs.
Understanding the home buying process
The buying process can betricky to navigate if you’re unfamiliar with it. You’ll typically start with a mortgage in principle from a lender, giving you an idea of what you can borrow.
Once you find a property you want to buy, you’ll make an offer through the estate agent. If accepted, the legal process begins involving conveyancers or solicitors to handle contracts and local authority searches.
Be patient – delays are common, especially if there’s a chain. Set aside time to understand the process fully so you can spot potential red flags early.
The importance of inspections and surveys
Don’t skip property inspections and surveys – these can save you thousands and a lot of hassle in the long run. These reports highlight issues like subsidence, dampor roofing problems.
A basic homebuyer’s survey is suitable for newer properties, while older homes may require a full structural survey. If serious issues are found, you may be able to renegotiate the price or even reconsider your purchase.
