Buying Your First Home: What Do You Need To Consider?

Getting a foot onto the property ladder is something that’s always worth doing, if you are able to.

Instead of renting and paying to live in someone else’s property, you’re investing your money into something that will be yours. It gives you security, as once it’s paid you no longer have to worry about paying for somewhere to live. It also means you can use the equity in future if needed. But when buying your home there’s a lot to consider, here are some of the things you will have to think about.

Save For a Deposit

The size of the deposit you have will make a big difference to the best mortgage deals you can find. You will need at least five percent of the value of the home you want, the mortgage broker will then lend you the remaining 95%. For example, to buy a £100,000 property you would need at least £5000. However this is just the minimum, if you are able to save beyond this it will put you in a much better position. You’ll be seen as less of a risk by lenders who will be more likely to offer you a mortgage, and your monthly mortgage payments will be cheaper too.

Saving for a deposit for your first home can be tricky, especially if you’re already paying a significant amount on rent each month. Start saving as soon as possible, and put away whatever you can. Consider moving to a cheaper property while you save, or even back in with parents if possible so you have more extra cash each month. Reworking your budget is also a good idea too. You may have less to spend on extras and luxuries for a while as you save for your deposit.

Consider a Help-to-Buy ISA too (more information here)

Find a Good Estate Agent

A good estate agent will guide you through the process of buying your first home. They will deal with the paperwork, liaise with your solicitor and negotiate on your behalf. Checking out new info from Entwistle Green and other similar estate agents can give you an idea about the kinds of services they offer. There should be no estate agent fees when you are buying a property, but if you come to sell in the future the fees are usually between 0.75% and 3.5% of the selling price. So something to take into consideration. Dealing with property is complex, having an agent to deal with things on your behalf can save you a lot of stress and headaches.

Get Insured

Once you have successfully saved for a deposit and secured a mortgage, another important step is to get insured. You will need two kinds- contents insurance (to protect everything inside) and buildings insurance (to protect the property itself). This is extremely important otherwise any structural damage will be coming from your pocket. This could cost several thousand pounds, maybe even tens of thousands. Damage caused by natural disasters such as fires or floods affect thousands of homeowners every year, don’t get caught short. The price you pay will depend on where in the country you live, and the risks associated with the area. Run your details through a price comparison website for an idea of the types of costs you’ll be looking to pay.

Happy Saving!