Taking that next step to getting on the property ladder is probably going to be one of the biggest steps that you will take in your life. If you feel as though you are a little daunted with the idea of buying your first property, then you have nothing to worry about. Here you can find out everything you need to know about your first property buying experience.
Buy or Rent?
For some, renting may well be better than buying. There are pros and cons to both sides of the story here. For some, renting may be easier and better than buying and vice-versa. If you are renting and you don’t have the initial outlay for a deposit, then you don’t need to worry. You also have the potential to move whenever you want as well. The downside is that you will never own the house, so you are not able to make the changes you want, such as redecorating. You will need to run everything past the landlord. When you have a mortgage, you can easily make any changes you want to the house and the monthly payments will go towards something that you will eventually own. Use this loan amortization calculator to find out more.
What can you Afford?
Before you even start looking for a property, you have to make sure that you visit a mortgage advisor. They will give you a really good idea of what you can actually afford. When you visit your advisor, you will need to bring some ID with you, and you will also need to give them some proof of your current place of residence. Having some payslips with you will also help you out, so keep that in mind if you possibly can. They will then be able to help you to work out how much you can afford as well, so you won’t have any problems at all there.
Saving for your Deposit
Normally you will need to get a deposit of around 5-20%. This is a lot of money if you are renting. Having a budget will help you to save here and it will also help you to raise your deposit. The best way for you to start would be for you to work out how much you can save up every month. You need to make sure that you can save up for any one-off repairs that you might need to make along the way as well, for example, if your car needs to go for an MOT. You can then work out how much you can afford to save up so that you can get on the right track. Putting your money into a savings account will help you out here and you may even find that you can benefit from having interest payments too.
Finding the Ideal Home
Browsing online agents such as Zoopla or even Rightmove can make it very easy for you to search for houses. You might also want to think about what the surrounding areas look like. Would you rather have somewhere that has a good level of nightlife? What about your commute to work? What do the local schools like? Once you have sussed this out, you can then start browsing. Look out for features such as the floor plan or even the age of the house when you are going around it. You might also want to look at the storage space and the energy efficiency rating too. This will give you a good idea of the space you will need to heat so you can get an idea of the cost.
Getting your Mortgage
Before you even start viewing properties in person, you have to make sure that you speak to your lender about getting an agreement in principle. This is a mortgage estimate at the end of the day. When you take this out, you will be able to get a much better idea of what mortgage is most suited to you and you can also find out how much you can realistically afford to pay every month. Your mortgage advisor will go into various types of mortgages including repayment or interest only. A repayment mortgage is pretty self-explanatory. You will pay off the mortgage as you normally would. When you take out an interest-only, then you will cover the interest on the loan but you will still need to pay the full cost of the mortgage at the end of the term.
Time for the viewing! If you want to make the most out of your viewing experience, then you need to try and bring someone with you. You also have to make sure that you photograph everything if you can. Turn up nice and early, and also make the effort to feel the walls. This will help you to find any cracks that might be present. Use your nose to sniff damp and take the time to prepare some questions for the seller. If you can do this, then you will soon find that it is easier than ever for you to make the most out of your situation.
Making an Offer
This is the point where you will finalize the mortgage. This will help you to pay for the home and it will also form an agreement between both parties. Ring the estate agent and then make them an offer. If they accept you then you will be all set for the future. Remember though, that nothing is final at this point. If they do not accept then you need to go back to the drawing board and you need to explore your finances. You should have your mortgage agreement ready, but if you want to finish the agreement then you have to make sure that you bring proof of ID and that you also bring your driving license too. Proof of your current address should also be taken, along with three months or so of payslips. After this, it’s just a case of getting the survey done so you shouldn’t have any issues from this point at all.