7 Tips for First-time Homebuyers

7 Tips for First-time Homebuyers

It is the dream of every individual to get their own home in their lifetime. It definitely needs a whole deal of commitment and hard work on a long term. Especially for first-time buyers, it might seem exhilarating and exhausting, but it is worth the wait. There are plenty of first time buyer mortgage UK deals that would provide special offers on interest rates or mortgage loans for the newbie buyers. Most of them would be confused as to where to begin their property search in the UK, and they usually take the help of local estate agents.


  Buying a home is a complex process and involves many steps throughout the course compared to renting a home. Even before starting to search for a property, buyers should plan everything in advance so that there are no last-minute surprises. Look out for location, nearby amenities, property type, mortgage brokers London, deposit and other expenses. Once the research begins, buyers will get an idea about how much they can afford to buy a property, start saving for the initial deposit and make room for other miscellaneous expenses for groceries, water, property taxes and more.


  With the annual income and other bonuses, the buyer can determine how much they can afford to buy the right property of their choice. This estimate also includes other bills apart from mortgage loans like utilities- electricity, water, gas connections, and other monthly expenses. A rough calculation of all these expenses before beginning with the property hunt will help the buyer to sort their finances in an orderly manner. Going beyond the budget limit will cause financial distress over time and would affect the mortgage bills. 


  A mortgage is applied based on the buyer’s annual income and how much monthly repayment is possible according to them. Buyers should manage their monthly expenses along with mortgage loans. Keeping all the costs in mind, people can research the different types of mortgage loans that are affordable for the buyer. Mortgage types also depend on the deposit percentage and the interest rates. Some popular types are buy-to-let mortgage, conventional mortgage, interest-only mortgage, discount and offset mortgages etc.

  Most people begin their application process for a mortgage only after they finalize the property. Mortgage loans take about three to six months to get approved. The process of pre-approval lets the buyer know how much can they can afford to purchase a property with the annual income details. Beginning with getting approved for a mortgage will save more time for the buyer and the property seller. Comparing the interest rates from different lenders and then applying for one is the best way to kick-start the home buying process. Apart from the interest rates of the loan, checking whether the lender provides any discount points to lower the forthcoming interest rates is also a deciding factor.  


  When applying for a mortgage, it is very significant to keep a low credit value to get approved without difficulty. The chances of getting approved for a mortgage loan is high when the credit values are low and clear. The credit history also plays a vital role when getting a loan from the bank. Existing debts that exceed a specific value will act as a hindrance during the loan application phase. To acquire high loan-to-value for the property, maintaining good credit is necessary. To improve credit score, settling the existing debts in the credit card is essential.


  Being a first-time property buyer, it is hard to keep track of all the complex processes involved from the beginning till the end. Hiring a local estate agent will cut the buyer’s work by half or more. The agents are well aware of the neighbourhoods and help find the best properties in the vicinity. They will guide the buyers throughout the property buying process and put in their expertise to work when it comes to bargaining for the best deals. With the help of an estate agent, closing the property deals become much faster compared to doing it alone.


   After deciding the right property for purchase, buyers should preferably request a home inspection. This inspection will take place at the interior part of the property. Although the buyer would’ve had a quick glance around the house, it is crucial to check the property thoroughly as it is an enormous investment. During the inspection, the property’s roof, power outlets, ventilation, switchboards, pipelines, gas connections and more. Once everything is thoroughly checked, it is followed by closing the property deal, which takes about a month. Getting all the documents and property’s paperwork ready and completing the purchase is the last step.    
John Norwood
John Norwood is best known as a technology journalist, currently at Ziddu where he focuses on tech startups, companies, and products.