Steps to Buying Your First Home
Buying your first home is an exciting time, though it can also be a daunting time. You are embarking on a journey that you have never been on before, which is why today we are here to guide you through the process in just 4 steps to buying your first home.
Saving for a deposit
The first stage will be saving up for a deposit to put down on your new home. The more that you can save here the better as it will not only give you access to a wider range of properties, it should also mean you can take your pick of mortgage lenders and deals.
As well as the deposit money, you will also need funds for solicitors fees, mortgage administration fees, moving costs and then anything you will want to spend on furniture or decorating.
Save regularly and try taking on a few money saving challenges to bump up that fund.
Meet with a mortgage lender
You are going to need to understand how much you can afford to borrow before you set your sights on a house. It is much better to do this at this stage, rather than start hunting for homes and then find that they are out of your reach.
The lender will talk through your current income level and your outgoings. Once they have a full picture of your current circumstances they will be able to work out how much they can lend to you.
That is usually all that you need to understand at this point, rather than the specific mortgage deals that they can offer, but it is worth getting an idea of what your monthly cost will be, including insurances, to that you understand what your outgoings will be.
Career Specific Mortgages
For many people in regular employment, the process of getting a mortgage is relatively straightforward and can be done through most high-street banks. Those that are self-employed, work on a freelance basis or have irregular working patterns may find it a bit more difficult to find a lender that will accommodate them (and can often end up paying higher interest rates).
For medical professionals, the complexity of getting a mortgage can be even more difficult. Many mainstream lenders often lack the flexibility to account for the often complex work patterns and finance flows of doctors and medical professionals (despite being in a profession with a generally high income potential). The result can be a complex source of income that won’t meet the usual requirement of a standard mortgage application. But worry not, there are lenders out there who are more flexible in their mortgage assessment criteria, and specialise in mortgages for doctors.
In some circumstances lenders may be able to use one or more of the following to support your mortgage application:
- An NHS P60/recent CV to establish your income potential.
- Statements from your practice financial director to establish projected drawings.
- Direct contact with underwriters to make a personal case based on a wider view of your wealth, assets and potential earnings.
The property hunt
You can now begin your property hunt. Start by drawing up a list of all of the requirements that you are looking for in a home and then add in the ‘nice to have’ elements too. This will form the core of your property hunt and you will be able to share this with estate agents in the area you are looking at.
Location is often key, so take the time to work out where will best suit you to buy and whether this fits within your budget.
You will soon be able to draw up a shortlist of places that you wish to go and view. Book these in and take a trusted friend or family member with you where possible to get a second opinion.
Research your property
You will soon be able to narrow down your search to one or two homes that you feel are going to be suitable. At this point, ensure that you have researched the area and are happy that you are familiar with the local amenities and transport and commuter links.
You will then want to research your chosen property to ensure that it is in good condition. It is often worth getting at least a homebuyers survey from a company such as Allcott Associates, as this will give you a greater insight into the property than a basic valuation report.
Compare, compare, compare
Now that you’re on your way to buying your first home you’ll want to make sure that you’re saving money on your new homes utilities and providers. Make sure to compare the best deals before jumping into a contract.
I’d recommend using MoneySupermarket to find the best deal for your home. Simply input your details to find the best home insurance deal, energy provider or broadband deals for your specific circumstances.
More home buying tips
If you are happy with the location, the house and the report, then it is time to make your offer! Good luck in your homebuying journey!