How to Buy Your First Home

Buying your first property is a big step, and it’s completely natural to feel a mix of excitement and nerves. In addition to finding a place you love, you need to make sound financial decisions and navigate an unfamiliar process.

But don’t worry, you’re not alone. Thousands of people buy their first home every year, and with the right knowledge and support, you can too.

From working out your budget to getting the keys in your hand, we’ll take you through each step clearly, so you can make decisions with confidence.

Determine your budget

The best place to start is knowing what you can comfortably afford. A mortgage that stretches you too far can turn homeownership into a struggle.

A good approach is to choose a monthly repayment that leaves enough room for savings and unexpected costs. That way, you can enjoy your new home without financial stress.

Save for a deposit

how to buy your first home

The more you can put down as a deposit on your first home, the better your mortgage options will be. Most lenders need at least 5%, but a higher deposit of 10-15% could get you lower interest rates and smaller monthly payments.

If you’re struggling to save, government schemes like the Lifetime ISA could help by adding 25% to your savings. It’s not always easy, but every extra pound saved now will make things easier later.

Get a decision in principle

A decision in principle (DIP) is a statement from a lender showing how much they’re likely to lend you. It’s not a guarantee, but it gives you a clear idea of your budget. Estate agents will often ask for this before accepting an offer, as it proves you’re a serious buyer.

Getting a DIP early means you can house-hunt with confidence, knowing what’s within your reach.

Find your property

This is where things get exciting. Do you prefer older properties with character or modern, energy-efficient new build houses? You should also think ahead. If you’re planning to start a family or work from home, does it have enough space? Take time to explore the area too. A house might look perfect in photos, but the feel of a neighbourhood is just as important.

Get a survey

Your lender’s valuation checks the property’s worth, but it doesn’t highlight structural issues. That’s where a homebuyer’s survey comes in. This can flag potential problems such as damp or faulty electrics, which may cost you thousands later.

If the survey reveals major issues, you may be able to negotiate a lower price or ask the seller to fix them before completion. It’s always better to find out now rather than face costly surprises after you’ve moved in.

Make an offer

Once you’ve found a house you like for your first home, it’s time to make an offer. Look at what similar houses in the area have sold for. If the property has been on the market for a while or requires work, you may be able to negotiate. Some sellers are open to offers below the asking price, especially if you’re a first-time buyer with no chain.

Once your offer is accepted, things start moving quickly, so be ready to take the next steps.

Apply for a mortgage

how to buy your first home

Now it’s time to turn your DIP into a full application. There are different types of mortgages – it’s worth talking to a broker or advisor to help you find the best option for your situation.

Your lender will arrange a valuation survey and take a closer look at your finances. You’ll need to provide documents such as payslips and bank statements, so having these ready can help speed things up.

Hire a solicitor

A solicitor (or conveyancer) handles all the legal work to transfer ownership of the home to you. They check that the seller has the legal right to sell, that there are no issues with the property, and that all contracts are in order.

They’ll also run searches to uncover anything that might cause problems later, such as local planning restrictions or flood risks.

Exchange contracts

Once your solicitor has finished their checks, you’ll exchange contracts with the seller. At this point, the sale becomes legally binding, and you’ll need to pay your deposit. If you pull out now, you’ll lose that money.

You’ll also agree on a completion date, which is usually a couple of weeks later. On completion day, your mortgage funds are transferred, and the keys are yours. That’s it – you’re officially a homeowner!

Buying your first property is a journey, and like any big decision, there will be challenges along the way. But with proper preparation and the right people to support you, you’ll soon be stepping through the front door of your very own home.

Images courtesy of unsplash.com and pexels.com

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