First time buyer information
Buying your first home as a first time buyer can be a daunting experience. There is just so much to do, from browsing properties and touring prospective areas to working with your broker.
But all the effort is worth it once you get the keys to your very own home and move in. Just make sure that you don’t forget all the important details in your excitement to move in.
We have put together a list of things you should be aware of, as a first time buyer, to ensure everything is in order when you move.
Determine the monthly cost of the home you want to buy for a first time buyer
Due to the rising costs of properties in the UK, most people buy their first property with a mortgage. The interest rates are quite friendly right now. However, the cost will still need to come out of your monthly income, so make sure that you carefully consider the costs before you make any decisions.
Get an agreement in principle (AIP)
There are two factors that are reviewed by a lender when you apply to get approved for a mortgage. The first involves your circumstances, such as your monthly income, current expenses, credit score, outstanding debt, and assets. The second factor involves the value of the property.
It’s important to get an AIP once you have found a property. This is usually the case when your income is good, and you have been employed for a steady period of time. A good, past record of paying loans and credit cards on time also helps.
An AIP increases your chances of buying a home. Many sellers and estate agents prefer buyers who already have an AIP from a lender because it speeds up the buying process, it also lets the estate agent view you as a serious buyer and not a time waster.
Find a good estate agent
A good estate agent can make the home searching process very easy. Estate agents have great knowledge about the market. They can answer any questions you have and guide you in the right direction to finding your dream home.
Even if you are not looking to buy a home for the next couple months, an agent’s advice can be valuable to understand what’s going on in the market.
Search for a home
Almost no one finds the perfect home on their first property visit. Generally it takes around three to seven visits at different properties to find the one that is suitable for you.
One way to improve the search process is to give the estate agent a complete, specific description for the type of home that you want. The more information you give the agent the better.
Usually, your estate agent will create a shortlist of at least a couple of properties that meet your criteria and will have them arranged for a visit. Make sure you go on viewings and visit as many homes as you can. The more effort you put into finding the right property, the sooner you can buy and move into your first home.
Make an offer
Make sure you consult with your mortgage broker before you make an offer to the agent. That way the broker can make sure that once your offer has been agreed a valuation will be instructed.
Valuation
A valuation involves a survey which will be carried out by a RICS valuer on behalf of the lender to check for living conditions, pest infestations, dampness and other problems. An valuation carried out will determine a fair market value.
Summary
There are many options for deals in the market, but finding the best deal is extremely important as you don’t want to over spend. We have access to over 55 of the UK’s best known lenders, If you are looking for the best deal, do get in touch with our brokers who can find the most cost-effective lender to support your needs.