As a first-time buyer, shopping around for your first home can be an exciting process. But with so many factors to consider ahead of time, it can be impossible to know where to begin. If you are preparing to set foot onto the property ladder, it may benefit you to familiarize yourself with a number of must-know tips and tricks beforehand. Continue reading to find out what you should consider as a first-time buyer and how doing so can end up streamlining the entire process from start to finish.
- How much you should save for a deposit
When it comes to buying your first home, you must determine how much you should save for a deposit. This can allow you to shop around for a home that you know you can afford in a timeframe that is achievable for you. If you are unsure, there are several online mortgage calculators available online to guide you through the process and ensure you are on the right track. They can assess your monthly income as well as any household costs to calculate how much you can afford and what kind of mortgage you are likely to be offered. If you want to take it a step further, you may also benefit from an affordability tool to gauge how much you should be saving each month to be able to afford your deposit within a specified timeframe. It can also highlight affordable geographical locations within close proximity to your current home and provide you with the information you need to start a mortgage application from scratch.
- Whether or not you will buy alone or with someone else
One of the first decisions you should make as a first-time buyer is whether or not you will buy alone or with someone else. With double the number of factors to consider ahead of time, this can end up having a significant impact on the rate you are offered on a house loan by a lender. It may, for example, allow you to save for a greater deposit and, as a result, be offered a better mortgage rate with lower monthly repayments. It is worth remembering, however, that you could be responsible for repaying the mortgage in full if a partner or friend defaults and is no longer able to continue paying their share. If you are moving in with a partner but are unmarried, on the other hand, you may also be subject to different rules and regulations than those applied to married couples. To prevent you from making a time-consuming and costly mistake, you must find this information out at the earliest convenience.
- What help is available to you
As is the case in most countries, there are a number of government schemes available to help first-time buyers set foot onto the property ladder and purchase their first home. It may benefit you to research this months, or even years, in advance, to ensure you are getting the most bang for your buck. By doing so, you may be able to purchase your first property with a smaller amount of money saved with the government contributing towards the final deposit amount required. When it comes to government schemes, however, there are usually various limits, terms, and conditions to familiarize yourself with beforehand. If this is something you feel you may benefit from, you should find out what help is available to you in your country.
- Whether or not your family will help
When it comes to flying the nest and setting foot onto the property ladder, a growing number of homeowners are benefiting from the help of their immediate family. Your parents may be able to contribute towards the final cost of your first home without handing over physical cash. For example, some lenders may take this into consideration but keep the money in their name. This can provide the lender with greater safety and security and provide you with a better mortgage rate. If this is a route you are likely to do down, it may benefit you to reach out to an independent mortgage broker ahead of time to find out everything you need to know about this type of mortgage. They will be able to recommend the best mortgage for your individual budget and lifestyle and guide you through the process of applying for a mortgage from start to finish.
If you are on the hunt for your first home as a first-time buyer, there are a number of helpful tips and tricks you should familiarize yourself with first. This includes considering how much you should save for a deposit, whether or not you will buy alone or with someone else, what help is available to you, and whether or not your family will help.