Buying your first home is a big decision and a significant commitment. It is likely to be the largest purchase that you will have made in your life and it often represents a milestone in financial independence. Home buying is an exciting journey to embark upon, but for those of you who also find it a little nerve-wracking, here is our simple guide to the process for you, 5 steps to buying your first home.
Save for your deposit
The first thing that you will need to do is save for your deposit. In addition to the sum you will need for a deposit, you should also set money aside for any moving, legal and administrative costs, and any decorating or furniture that you might want for your new home.
To save, you might consider cash for annuity payments and regular savings accounts, alongside budgeting carefully in a bid to reduce your outgoings and increase your savings pot.
Get some mortgage advice
The next step is to chat with an advisor to get some mortgage advice.
You will need to understand how much you will be able to borrow and how much that will then cost you in repayments each month. You can then work out how much you will be comfortable borrowing and how much you are going to need to budget for this move.
Decide what you will need from your new home
This one seems so obvious, but many people do not take the time to stop and really think this one through. It is easy to launch straight into the property hunt, before working out what you really need from your new home.
Write out a list of everything that you would like to have in your new home, such as the number of bedrooms, any outside space and the type of property. You can then go through everything and work out which ones are the real priorities and which ones would just be nice to have. This way you will have formed a list of requirements that can prepare you to compromise where necessary and to help you to narrow down your search.
Research the location
Location is everything when you are buying a home, so take your time researching the location that you are considering.
If this is a new area to you, ensure that you look into any future developments and plans for the area, the amenities available and the transport links. You can then look into things that are specific to your hunt, such as the schools or any local community clubs and events.
Search for that ideal home
You are now in a position to take to the streets and search for that ideal home.
Call local realtors and fill them in on what you are looking for, along with conducting your own searches. It is worth viewing properties in real life, rather than just looking at them on the internet to get a good feel for the space and light that they offer along with their location and position.
When you have found the home that is right for you, make that offer and get the ball rolling.