Top Tips and Resources for First-Time Home Buyers
Buying a first home is an incredibly exciting milestone in life but it can also be daunting. You may have had to scrimp and save and traipse around house viewing after house viewing, but now you’re set to move forward. Before you do, here are a few tips and things to keep in mind as you set off down the road to adulthood and independence.
Fact is, with a higher credit score the easier it’ll be to get the best mortgage deal available. A poor or average score could affect your chances of being rejected for a mortgage altogether as they’ll see you as an unreliable investment. Check your score for free with these credit agencies: Experian, TransUnion, and Equifax.
Although it may seem all doom and gloom, just remember that there is no such thing as a credit blacklist - this is a myth. If one lender has rejected you, it doesn’t mean that others will too.
Take advantage of useful resources and government schemes
As a first-time buyer who is clueless about what they're doing and what they can do to improve their situation, you’ll need all the help you can get. Begin getting accustomed to the property process with these useful resources and information:
● Mortgage calculators : it’s always a good idea to work out how much you can afford and how much you can borrow because it can give you clarification on budget and deposit. Try these mortgage calculators from MovingSavingExpert and MoneyAdviceService .
● Zoopla and Rightmove : other than being helpful databases that advertise houses for sale, they can also provide free house sale price tools, such as price comparisons based on your chosen location and previous market listings. You can also get alerts for any properties that become available on your favourite streets and locations.
● Government schemes: you may have heard of the various Help to Buy schemes available - as a first-time buyer, it’s now time to utilise them! These schemes require a minimum 5% deposit of the property value and provide flexibility to many buyers.
● Help to Buy and Lifetime ISAs : As well as the schemes, there are also ISAs that you can take advantage of. In short, a Help to Buy ISA is designed to boost first-time buyers’ savings - for every £200 saved, the Government will add £50 and this is up to a maximum of £3,000 extra (based on saving £12,000). In comparison, a Lifetime ISA offers a tax-free boost of up to £1,000 a year (if you save £4,000) which can be put towards a first home or retirement savings for anyone aged between 18-39 years old. For more information, read on here .
When searching for a property, always ask about the lease. A lease is the right to use a property for a set period of time - the shorter the lease, the more it costs to extend. It’s also difficult to sell on a property or get a mortgage for a property that has a short lease.
The general rule is that if a property has a lease below 80 years, avoid it. Instead, try and aim for those over 90 or, at least, nothing lower than 83 years.
Understand the property process
From the initial search all the way through to moving in, the property process can take anything from a couple of months to years depending on the chain. From contract signing to surveys, there’s a lot to think about so it’s a good idea to get clued up or, otherwise, talk to a conveyancing solicitor for advice.
If you’re a first-time buyer, looking to purchase your first home, consider getting help from a trusted property lawyer today. At Andrew Lee Property Lawyers in Kent, we can aid in the conveyancing process, from offering mortgage advice to helping homeowners. Contact us today.
