Advice for a First Time Home Buyer
Buying your first house or flat is a stressful and confusing process, especially for first-time home buyers. Architects Warrington are giving you a step-by-step guide through the difficult process that is buying your first home.
Deposits, Deposits, Deposits
We’re diving straight into the deep end with this one. Deposits are pricey and confusing, depending on how much you already know about how the deposit part of the process works. First off, you need to decide how much you can put towards a new home. The way it works is the bigger the deposit, the better mortgage rates you’ll be offered and the lower your monthly mortgage payments will be.
You should aim for a minimum saving of 10% of the cost of a property for a mortgage. A bigger deposit of 25% will open doors to better savings when it comes to buying. Architects Warrington suggest starting saving as soon as possible for your deposit, as it can sometimes take a while to save up enough.
Expect Extra Costs
Other than your monthly mortgage payments, there are other costs when you’re buying a home. Things like survey costs, removal costs, buildings insurance, solicitor’s fees, furnishing and decorating costs and many, many more things to consider when buying your first house.
These extra costs are things you need to consider when deciding your budget on your new home, whether you’re just starting to think about buying or further into the process.
Make Sure You Can Afford It
Because you’re a first-time buyer, you really need to consider if you can afford the regular monthly payments on your mortgage. Of course, if you already rent, you’re used to spending your monthly wages on rent and other such necessities, but your mortgage may be more expensive than your average rental price.
Architects Warrington says to review the costs of your new home and make a budget, even before you start looking. This way, you know that you won’t be spending more than you can afford.
Consider First-Time Buyer Schemes
There are several different home ownership schemes available from the government, dependant on where you live, as they can vary. It means that if you have a smaller deposit, you can seek for extra help from these schemes such as Help to Buy. It offers first-time home buyers the opportunity to buy a new or existing property with a deposit of just 5% rather than 10%.
It means that you’ll have your deposit saved quicker than you would if you aimed for 10%, although there are a few things to consider such as which scheme you’d like to pick as there are several and which one appeals to you and your situation the most.
Speak to Your Architects Warrington Today
Fairtech Contracting LTD has several other blog posts regarding home buying and even options for your own self-build depending on which appeals to you the most. Take a look at their other posts for more information on purchasing your own home, or even call 0151 321 1986 for advice on your first home.