Step-by-Step Guide for First-Time Buyers

When you are looking to buy your first home, getting onto the property ladder can be difficult and stressful. In my guide for first-time buyers, I explain what you need to know when it comes to the homebuying and mortgage process.

How to Buy Your First Home

Here are some simple steps for buying your first property:

1. How much can you afford?
   Work out how much you can afford in terms of monthly mortgage payments and a deposit. You will usually need a deposit of around 5 to 10% of the total property price (except for zero and low deposit mortgages). You will also have to factor in extra costs like legal fees, surveys, stamp duty, and removal costs.
2. Get a Mortgage Decision in Principle
   Ask your mortgage adviser to get a Decision (or Agreement) in Principle, which gives you an idea of how much you can afford to borrow. Lenders assess affordability using your income and outgoings to check that you can manage payments even if rates rise. It’s advisable to apply for a Decision in Principle before you find your property, so you can make a firm offer on your chosen property. This reassures both the sellers and estate agents that you are a serious buyer.
3. Research suitable properties:
   Start looking for homes within your budget and your preferred area. Think about your future life plans and consider the local amenities, including transport links, schools, shops, and healthcare providers like doctors and dentists.
4. Make an offer
   When you find a property, make a formal offer through the estate agent. It’s worth noting that a good-sized deposit will usually result in lower mortgage interest rates.
5. Appoint a conveyancer
   If your offer is accepted, then you’ll need to instruct a conveyancer or property solicitor to handle the legal side.
6. Legal checks and searches
   Your conveyancer or solicitor will carry out a series of legal checks and searches related to the property. They will review contracts and liaise with the seller’s solicitor. Once both parties become legally committed, you can exchange contracts.
7. Completion
   When all remaining funds are paid, ownership of the property will be transferred to you. You can then pick up your keys and move in!

Mortgage Guide for First-Time Buyers

When you apply for a mortgage, you will need to submit a full application to your chosen lender. They will ask for certain documentation, such as proof of income and deposit, formal ID, your address and bank statements. They will run a credit check, and your score will determine the amount of money the lender will allow you to borrow.

The lender will arrange a mortgage valuation of your chosen property. Their insurance

underwriters will assess your affordability, check documents, and they might ask for further evidence, such as payslips. Once you have satisfactorily passed this stage and there are no concerns, this usually leads to a formal mortgage offer.

Mortgage Advice for First-Time Buyers

Without clear mortgage advice on what you can afford to borrow from a lender, this could cause delays. You might even miss out on buying your dream home. If you cannot afford a large cash deposit, you might be eligible for a 95% or 100% mortgage. Another option could be a ‘sole proprietor’ mortgage, where a family guarantor helps with affordability.

Buying your first property is such an important step in life, and I love helping first-time buyers purchase their first home. I have access to over 90 lenders and will research the market to find you a suitable mortgage. I’m here to guide you every step of the way.

Are you a first-time buyer and need mortgage advice? Book a call today

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Sources:

https://www.nationwide.co.uk/mortgages/first-time-buyers/guide

https://www.confused.com/home-insurance/guides/buying-your-first-house

https://www.charcol.co.uk/guides/applying-for-a-mortgage/

https://www.revolutionbrokers.co.uk/mortgage-applications/process-explained

https://www.gov.uk/first-homes-scheme/how-to-apply

https://www.pettyson.co.uk/about-us/our-blog/938-first-time-buyer-fears

https://www.showhouse.co.uk/first-time-buyers-biggest-fears-covid-breakups-and-negative-equity/news/

https://hoa.org.uk/advice/guides-for-homeowners/i-am-buying/how-to-buy-your-first-home/

https://hoa.org.uk/advice/guides-for-homeowners/i-am-buying/the-hoa-step-by-step-guide-to-buying-a-home/

https://www.your-move.co.uk/buy/guides/first-time-buyers-guide