A Comprehensive Guide to Successfully Purchasing Your First Home

Buying your first home is a significant milestone that marks a transition towards stability and investment in your future. While it’s an exciting endeavour, the process can be daunting, particularly for first-time buyers. However, with careful planning, financial preparation, and informed decision-making, you can successfully navigate the journey to homeownership. In this comprehensive guide, we’ll break down the essential steps and considerations, giving you the confidence and knowledge to embark on the journey to find your first property.

 

Reviewing Your Financial Position

Before diving straight into the property buying process, we would recommend beginning your journey by assessing your current financial situation thoroughly. We recommend concentrating on three major areas of your financial status.

1. Savings: Start by evaluating your savings to determine your down payment and legal costs.
2. Spending Habits: Review your spending habits to identify areas where you can cut back and increase savings.
3. Credit Score: Your credit score plays a significant role in mortgage eligibility and interest rates, so be sure to review it and take steps to improve it if necessary.

 

Government Schemes for First-Time Buyers

For those facing financial constraints, various government schemes exist to support aspiring homeowners.

• Help to Buy: The Help to Buy scheme will support the purchase of a new-build home with just a 5% deposit. The scheme allows you to access a loan of up to 20% of the property’s purchase price, or 40% in London, which remains interest-free for five years. As a result, you can secure a mortgage with a lower deposit, making it easier to buy your first home.
• Shared Ownership: Shared Ownership allows you to purchase a share of a property whilst paying rent on the remaining portion. Ultimately, you will aim to increase your ownership shares until you own the property outright. This scheme is particularly beneficial if you cannot afford the total purchase price of a home outright.
• Starter Homes Scheme: This option offers discounted newly built properties if you’re under 40, which will be priced at least 20% below market value. You must meet income criteria and commit to residing in the property for a specified period.
• First Homes Scheme: The First Homes Scheme provides you with new-build homes at a minimum 30% discount from market value. Priority goes to locals and critical workers to enhance housing affordability and community growth.

Exploring these government schemes can provide valuable opportunities, allowing you to take proactive steps towards realizing your dream of owning a house.

 

Mortgage Choices for First-Time Buyers

Navigating the various mortgage options can be daunting, but understanding the basics can simplify the process.

• Fixed-rate mortgages offer stability and predictability. They have a set interest rate for a defined period, typically two, three, or five years.
• Tracker mortgages, on the other hand, fluctuate with interest rates. The benefit of a tracker mortgage is its initial competitive rates, but it comes with the risk of payment increases if rates rise.
• Offset mortgages connect your savings to your mortgage balance, reducing interest payments.

Each option has advantages and considerations, so it’s essential to carefully weigh them based on your preferences and financial situation. First-time buyers often utilize fixed-term mortgage options due to the need for stability and risk reduction.

 

Deciding on the Right Property

Finding the right property involves careful consideration to ensure it meets your needs, preferences, and lifestyle. Start by making a list of your requirements, which may include:

• Property type
• Location
• Size
• Renovation potential
• New build preferences

Additionally, we recommend utilizing house viewings to ask questions and gain insights into the property’s condition and the area. Do some pre-viewing research and prepare questions to maximize the viewing’s benefits. These steps will simplify your search process, enhancing the chance of finding your ideal home.

 

Instructing Conveyancing & Survey 

Once you have found the perfect property and your offer has been accepted, typically the next steps that are involved include instructing a conveyancer and conducting a property survey.

When you purchase a property, it is commonplace to instruct a conveyancer. Their purpose is to look after the legal process of transferring the property’s ownership from the seller to the new owner. When you purchase your first property, you want to ensure you are doing everything possible to mitigate any risk or issues that may hinder the process. Therefore, it is crucial you instruct a reputable conveyancer who will ensure this transfer is a seamless and hassle-free process.

Similarly, when purchasing a property, we recommend carrying out a property survey. The reason for this, is to assess the property’s condition and identify any issues before completing the buying process.

By prioritizing these steps, you are minimizing the chances of issues arising which may hinder the final stages and ensures you are set for a smooth transaction.

 

Closing On Your First Property

The closing stages of your home-buying journey involve completing essential tasks to finalize the purchase and officially take ownership of the property. It is important that you coordinate with your lender, real estate agent, and legal representative to ensure all requirements are met within the designated timeline. The final step involves attending the closing appointment to sign the concluding paperwork and finalize the transfer of ownership. After all documents are signed and funds disbursed, the keys to your new home will be released, making you a first-time homeowner.

 

Conclusion

The home-buying process requires careful planning, financial preparation, and informed decision-making. By following the steps outlined in this guide and seeking guidance from professionals where necessary, you will be well-equipped to embark on your homeownership journey.

 

If you are purchasing a property and need to sell your current house quick, the team over at We Buy Any House can help you sell your house in as little as 3 days