The initial steps for first time buyers

Do you want to be a first time buyer? It can be daunting when trying to get on the property ladder, there are many things you need to consider when deciding your plan of action.

In this post I’m going to go through the initial steps you need to follow, which will ensure you are not going in completely blind! And will prepare you for the next stages of the process.

Be 100% Certain

The social pressure of needing to “be on the property ladder” by a certain age is something I think causes more harm than good. People who are not even remotely ready to think about a mortgage, manage to get one, and slowly but surely they end up having their home repossessed because they couldn’t keep up with the repayments.

There is no perfect time or a time limit to when you should own a home. Sit down for a second and really think about it, why do you want to own a home right now? Do you have enough for a deposit? How does it fit into the foreseeable future? Can it wait a few years or do you need it right now? Can you afford it? If you can afford it, are they properties you want to own? Or are you settling?

These are the types of questions you need answers to, it will give you clear motivation to get on the property ladder, as I’m sure you know is not easy.

First thing you’ll need is a deposit

Now you’re 100% certain you are ready to take the plunge and start climbing the huge ladder that is property, the first thing you need is a deposit.

A deposit is a lump sum you need to pay towards the price of a property when you buy it. Generally it will be a percentage of the price, for example, a £40,000 deposit on a property worth £400,000 would be a 10% deposit. The larger the deposit you pay, the lower your monthly payments and interest rates will be.

The amount you need will depend on the lender’s criteria, how much the property costs, your financial situation and your credit score. If you’d like to speak with one of our expert advisers about your deposit, please book an appointment here and we’ll give you a call back asap!

Find a mortgage broker

This part of the guide has not been added just to sell what we do (we promise!), this is an essential aspect of being a first time buyer as there will be many questions you’ll have, and a mortgage broker will be able to answer all of them.

A good broker (like us…okay maybe we included it a little bit so we could tell you about what we do) should be able to explain how much you will be paying monthly, and any other fees to the penny. A good broker can also advise you on what kind of mortgage you should be looking for based on your financial circumstances, this will ensure you will never be treading water when it comes to your repayments.

They will also be with you from the very beginning to when you’ve paid off your mortgage, helping you with any thing related to it along the way. If you’d like to speak with us about the first steps, please book a call here and we’ll give you a call back as soon as possible.

It will not be a short process

There are many blunders that can happen when trying to buy a home, whether it’s your first or your tenth, patience is key. For example, you could make an offer, get accepted, hand your notice in for where you currently live and then find out an inspection of the property has found that the roof is damaged and needs to be fixed before you move in.

Try not to panic or get frustrated, it’s to be expected that things will not go to plan, this is what a good adviser is for. Call your mortgage broker and speak with them about the steps you can take to get things in order.

So you don’t feel overwhelmed, I’m going to leave it here. These are the first few things you need to really consider and to get your mind right for when the process starts.

If you’d like to speak with one of our expert advisers and find out how we can assist you with starting the process of buying your first home, please book an appointment here and one of our agents will get back to you as soon as possible.

I will be walking through the next set of steps in my next post!