Three Essential Tips For First Time Buyers
Buying your first home can be a tricky process. Fortunately, we understand the importance of a simple, pain-free procedure for those seeking to get themselves onto the property ladder for the first time. It’s an exciting moment, and so it should be, but there are certain avenues you will need to navigate to ensure the operation is as smooth as it possibly can be! Let’s take a closer look at three essential tips for first-time buyers:
One of the first things mortgage companies will analyse when deciding upon whether to offer you a mortgage or not is your credit history. Your credit history is a detailed record of your spending and borrowing that provides a score based on your results and ability to manage finances in the past. It’s quite simple to get hold of your credit score, you can request a copy of these details through a credit score reference agency, such as Experian.
We recommend that you make attempts to boost your credit score yourself before making contact with a credit reference agency, such as ensuring your debt repayments are paid on time or credit accounts no longer in use are closed, as this can have a significant positive reflection on your initial score. If you’ve never had a credit card before, it may actually be beneficial to open an account to boost your score, just as long as the outstanding balance is paid back in full each month. Remember, a good credit score requires a clear positive track record of credit repayment, so without this information, your score may be affected and lenders may be less likely to trust you.
When it comes to buying your first home, the first step of the process is to start saving for your deposit. Generally speaking, most mortgage companies require at least a 5% deposit to purchase a property, though the down payment can realistically be much more than this, should you have the finances upfront. This means that an average home costing £250,000 will require at least a 5%, £17,500 deposit upfront, but saving more than this will offer greater access to a wider range of lower mortgages with reduced interest rates.
There are a handful of schemes and initiatives set up to help first-time buyers find their place on the property ladder, such as the Government's Help To Buy initiative which aims to assist first-time buyers through the use of interest-free loans or shared ownership schemes, either by reducing the initial deposit or the long-term interest rate.
At Andrew Lee & Co Property Lawyers in Kent, we understand buying your first home is a major milestone in life. As a first time buyer, it can be tricky to navigate the web of property law. We’re here to make it simple. We provide quality property law services to first-time buyers across Maidstone, Kent, the South East of England and England and Wales. Contact us today.
