First-time Buyers: What To Expect

Buying a home is one of the biggest financial investments you will make, and this is why it is important to understand the process. Being a first-time buyer can be daunting, and there is a lot of things to consider due to it being a rather complex process, so we have put together this guide to the different steps of buying a home so that you will know what to expect if or when you are taking the step. 

Your Deposit  

Depending on what stage you are at, you will need to make sure you have enough for a deposit. There are some obvious benefits of having a good-size deposit; it will be a lot easier to obtain a mortgage, for example. Another advantage of having a larger deposit is that you will have more equity in the property you purchase.  

If you have not yet begun saving for your deposit, you should look at creating a budget for your monthly expenses to see how much you can put back. It can be easy to make cutbacks on things like eating out as well as cancelling any memberships you don't use. However, as well as allowing yourself to save more money, reducing the amount you spend on your monthly outgoings can boost your mortgage affordability as lenders will calculate how much you can borrow based on your monthly salary and how much your outgoings are.  

Your Mortgage  

There is a range of different mortgages available which usually come with a variable or fixed rate over a number of years. As a first-time buyer, it can be a good idea to seek the advice of a mortgage advisor as they will be able to advise you on the best course of action, although this will usually come at an extra cost.  

During your mortgage application, you will be asked to provide numerous documents such as payslips, proof of income and bank statements. You should be able to get a mortgage with a minimum deposit of 5% of the property’s value. However, as mentioned above, if you can put a larger deposit down it will be more beneficial.  

Searching for a Home  

One of the most exciting parts of the process is looking for a property to buy. Depending on whether you are using a local housing scheme like Help to Buy, you will be able to find properties for sale on estate agents’ websites; you can also register your interest beforehand. This means that if any suitable properties come onto the market, you will be one of the first to know.  

Finding the right home for you is extremely important, and you should consider the location, local schools, commuting distance and anything else you think will be important. Make a list of the things you are looking for and what you would consider a priority, then see if there are any available properties which meet your criteria.

Additionally, you should think about the specifics you want from the property itself, like a garden or parking. However, it is also important to remember that your first home doesn't have to be your dream home, so try to strike a balance between what you really need and what you can compromise on.  

Making an Offer  

When looking to make an offer on a property, you should try and treat the asking price as a guide. Many sellers don't usually expect potential buyers to match that price, but you should be prepared for them to counter your offer.  

Deciding on what you should offer can be a difficult task as if you offer too low you could be outbid, and too high you could end up paying too much. To begin with, you should determine the maximum you are willing to offer, then decide on how much lower you will offer on the property.

As a first-time buyer, you should be in a good position as you will have no property to sell and should be able to move quickly; this is often favoured among sellers who have already purchased their next property.  

Other Expenses  

Unfortunately, the deposit is not the only money you will have to save for, as there are a variety of other costs to think about. You will need to consider the following:  

• Stamp Duty (if applicable)

• Home and building insurance

• Furniture and furnishings

• Solicitor fees

• Mortgage advisor fees

• Survey fees

Survey

When purchasing a home, you may need to instruct a Chartered Surveyor to assess the state of the building and make sure that it is structurally sound. Your mortgage provider will carry out their own valuation to ensure that they are making a good investment and to find out if what they are lending you is correct. However, it is advisable that you have a more detailed survey carried out to give yourself peace of mind about the structure of the building.  

Solicitor

It is also advisable that you hire the help of a solicitor during your property purchase, as they will be able to create the contract, do their checks and searches as well as deal with all of the legal aspects. 

Exchanging and Completion 

Once your offer has been accepted, everything will start to fall into place with the help of your solicitor. During this stage, the following should happen:  

• Mortgage valuation is carried out

• Building insurance will need to be ready

• The deposit will be sent to the solicitor

• Contracts will be exchanged

• You will get a date for completion

During this stage, you will not have to do a lot as your solicitor should manage many of the points above for you. When you reach your completion date, the money from the mortgage company will be transferred over and the house will finally be yours!

An estate agent can be a huge help during the property buying process and can help move things along by checking in regularly with the seller and helping you find your perfect first home. If you are looking for homes for sale in Okehampton or the surrounding area, please do not hesitate to get in touch on 01837 54504.