Buying your first home is a big milestone, and let’s be honest, it can feel overwhelming. With so much to think about, where do you even begin? Don’t worry; by breaking the process into clear steps, it becomes far more manageable. Whether you’re eager to get on the property ladder or just testing the waters, this guide is here to help.
1. Start With a Local Mortgage Broker
Before anything else, it’s essential to figure out what you can afford. A local mortgage broker is your go-to person for this. Why local? They’ll have insight into lenders and schemes in your area, making it easier to secure a deal tailored to your needs. A broker can also explain all the jargon things like interest rates, fixed versus variable loans, and affordability checks. Plus, they’ll handle a lot of the paperwork for you.
This step isn’t just about finding out how much money you can borrow; it’s about understanding your overall budget. It’s not just the deposit you need to save for, but also things like solicitor fees, moving costs, and surveys. A mortgage broker helps you see the bigger picture.
2. Work Out Your Budget (And Stick to It)
Once you know how much a lender is willing to offer, take a realistic look at your finances. Just because you’re approved for a certain amount doesn’t mean you should max it out. Think about your lifestyle and future plans. Will your monthly payments leave room for holidays, hobbies, or unexpected expenses?
Include all the additional costs of buying a home in your budget. For example:
- Deposit: Typically 5-20% of the property price.
- Stamp duty: Check the rules, as first-time buyers may qualify for discounts.
- Solicitor fees: They’ll handle all the legal bits.
- Surveys: These ensure the property is in good condition.
- Moving costs: Don’t underestimate the cost of removal companies or even DIY moving van hire.
Once you’ve got a clear view of your finances, it’s time to start house hunting.
3. Research Neighbourhoods Thoroughly
You might already have an area in mind, but it’s worth digging a bit deeper. Look into property prices, transport links, schools (even if you don’t have kids, this can affect resale value), and amenities. Spend time in the neighbourhood during different times of the day. Is it peaceful at night? Is the commute manageable? Do you feel safe walking around?
It’s also a good idea to chat with locals. They often have insights you won’t find online, like which streets are particularly sought-after or areas to avoid.
4. Get a Mortgage Agreement in Principle
Before you start booking viewings, get a mortgage agreement in principle (AIP). This is a document from your lender stating how much they’re willing to lend you, subject to final checks. It’s not a full mortgage offer, but it’s a valuable step for two reasons. First, it shows sellers you’re serious. Second, it gives you a clear price range, so you don’t waste time viewing properties outside your budget.
Most lenders provide an AIP within a day or two, and it’s usually valid for 30-90 days. Keep in mind that this isn’t binding, so your final mortgage offer might vary slightly.
5. View Properties with a Critical Eye
House hunting is exciting, but don’t let emotions cloud your judgment. It’s easy to fall in love with a place that feels right, but make sure it ticks all the practical boxes too. During viewings, check for things like:
- Condition of the roof: Repairs can be costly.
- Damp and mould: These are signs of underlying issues.
- Heating and plumbing: Is the boiler modern? Do all the taps work?
- Storage space: Will it suit your needs?
- Natural light: Small details like this can hugely impact a home’s feeling.
It’s worth viewing a property more than once, especially at different times of the day. This helps you notice things you might have missed the first time around.
6. Make an Offer (And Negotiate!)
Found a property you love? It’s time to make an offer. This step can feel nerve-wracking, but remember: offering below the asking price is entirely normal. Do your homework and check how much similar properties in the area have sold for? If the seller counters, don’t panic. Negotiation is part of the process, and a good estate agent will help guide you through it.
Once your offer is accepted, the real work begins. You’ll need to finalise your mortgage, instruct a solicitor, and arrange a survey.
7. Don’t Skip the Surveys
Surveys might feel like an annoying extra cost, but they’re essential for peace of mind. A basic valuation survey is often required by your lender, but this won’t highlight potential issues like structural problems or dampness. For a more in-depth analysis, consider a homebuyer report or a full structural survey, especially if you’re buying an older property.
If the survey reveals problems, you may be able to renegotiate the price or ask the seller to fix them before completion. It’s much better to know about issues now than after you’ve moved in.
Ready to Make Your Move?
Buying your first home is a journey filled with excitement, decisions, and a bit of paperwork. By following these steps, you’ll approach the process with confidence and clarity. Remember, it’s all about preparation. Get your finances in order, research thoroughly, and don’t rush into anything. With the right approach, you’ll soon be picking up the keys to your very own home.
