Buying Your First House? Important Tips

For many first time buyers, simply getting their foot onto that first rung of the property ladder may seem completely overwhelming and out of reach. Here, we give you some key ways to overcome the obstacles to getting your very first home of your own. The Initial Home Deposit The required savings to secure the home is often the first stumbling block people face when trying to purchase their first home. Most mortgage lenders will expect you to have at least a minimum of 5% of the sales price of your preferred home to put down as an initial amount. The more you can save up in your pot, the more likely you will have access to more mortgages and probably at preferential rates. People with larger deposits are often viewed as more secure and less of a risk for mortgage lenders. House prices are on the rise and have been getting higher every year. With this in mind, it could be a good option to choose to purchase a new build house through the UK government help to buy scheme, which allows you to buy with assistance from the government. Any first-time buyer can use the help to buy scheme, allowing them, to borrow up to twenty percent of the cost of the house, meaning you can buy a home with a 5% deposit and just need a mortgage for the remaining 75% of the value. The Credit Score Another area where people can be caught out when buying a house is that it is important your credit score accurately shows you and the risk you may pose to mortgage lenders. Your personal credit score is built up over a long period of time and is improved when you pay off any loans in full, stay in credit and not borrowing higher than you can afford to repay. You can check your credit rating for free on various websites to ensure you are on a solid starting path. Your Financial Situation It is so important to check that your bank account looks healthy before you begin looking to borrow for a house loan! Keep track of what is going into and out of your account at least 6 months to a year ahead of when you want to borrow, as your mortgage lender will likely look through your account dating back several months to check that you are a suitable candidate for a mortgage. It is a good idea to prune any unnecessary expenditure such as unused gym memberships, subscriptions you do not need, and hold off on the big nights out or expensive credit agreements! It is certainly going to help you if you make your bank account look a bit tidier before you attempt to borrow. Understand Home Purchase Costs If you are yet to own your own home, you may not be fully aware of the costs you need to factor in when working out what you can afford to borrow. This includes attorney fees, tax, surveys and removal costs. There are also running costs you need to bear in mind too, such as any ground rent, service charges, ongoing maintenance, and council tax as well as regular bills! Speak to a Mortgage Broker Real estate brokers are a great way to find the absolute best deals for your money. When you are dealing in house prices costing hundreds of thousands of pounds, a tiny change to the interest rate could be you paying thousands more over the years. In a similar way, the fees on your loan can make a significant difference to the cost of buying your first home. If you go through a real estate agent, you will have access to the best advice and deals for your personal situation and they may be able to settle options you had not thought of before.

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For many first-time buyers, simply getting their foot onto that first rung of the property ladder may seem completely overwhelming and out of reach.  Here, we give you some key ways to overcome the obstacles to getting your very first home of your own.

The Initial Home Deposit

The required savings to secure the home is often the first stumbling block people face when trying to purchase their first home.  Most mortgage lenders will expect you to have at least a minimum of 5% of the sales price of your preferred home to put down as an initial amount.  The more you can save up in your pot, the more likely you will have access to more mortgages and probably at preferential rates.  People with larger deposits are often viewed as more secure and less of a risk for mortgage lenders.

House prices are on the rise and have been getting higher every year.  With this in mind, it could be a good option to choose to purchase a new build house through the UK government help to buy scheme, which allows you to buy with assistance from the government.  Any first-time buyer can use the help to buy scheme, allowing them, to borrow up to twenty percent of the cost of the house, meaning you can buy a home with a 5% deposit and just need a mortgage for the remaining 75% of the value.

The Credit Score

Another area where people can be caught out when buying a house is that it is important your credit score accurately shows you and the risk you may pose to mortgage lenders.  Your personal credit score is built up over a long period of time and is improved when you pay off any loans in full, stay in credit and not borrowing higher than you can afford to repay.  You can check your credit rating for free on various websites to ensure you are on a solid starting path.

Your Financial Situation

It is so important to check that your bank account looks healthy before you begin looking to borrow for a house loan!  Keep track of what is going into and out of your account at least 6 months to a year ahead of when you want to borrow, as your mortgage lender will likely look through your account dating back several months to check that you are a suitable candidate for a mortgage.  It is a good idea to prune any unnecessary expenditure such as unused gym memberships, subscriptions you do not need, and hold off on the big nights out or expensive credit agreements!  It is certainly going to help you if you make your bank account look a bit tidier before you attempt to borrow.

Understand Home Purchase Costs

If you are yet to own your own home, you may not be fully aware of the costs you need to factor in when working out what you can afford to borrow. This includes attorney fees, tax, surveys, and removal costs.  There are also running costs you need to bear in mind too, such as any ground rent, service charges, ongoing maintenance, and council tax as well as regular bills!

Speak to a Mortgage Broker

Real estate brokers are a great way to find the absolute best deals for your money.  When you are dealing in house prices costing hundreds of thousands of pounds, a tiny change to the interest rate could be you paying thousands more over the years.  In a similar way, the fees on your loan can make a significant difference to the cost of buying your first home.  If you go through a real estate agent, you will have access to the best advice and deals for your personal situation and they may be able to settle options you had not thought of before.

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