First Time Home Buyer Guide: 5 Things You Need to Do
Are you currently searching for your dream first home, or perhaps you’ve already found it and are in the process of making an offer and getting prepared to make one of the biggest purchases of your life. Buying your first home is a very exciting experience, whether you’re putting down a modest deposit on a small flat or have saved enough to buy a big house for starting your family in. However, before you start looking at DIY supplies or deciding what you’re going to do with the bathroom, here are some important things that you’ll need to do.
#1. Straighten Out Your Credit Report:
Bear in mind that one of the first things that your bank will do when you apply for a mortgage is to carry out a credit check on you. As a result, the amount of interest that you’ll pay on your mortgage repayments will depend on how creditworthy the lender thinks you are. Because of this, it’s important to ensure that there are no mistakes on your credit report and that you’ve done all you can to improve it such as paying off any outstanding debts and ensuring all bills are paid on time. It’s a good idea to access your credit report from all three agencies at least a year before you start looking for your first home.
#2. Figure Out Your Deposit:
When taking out a mortgage, it’s important to make sure that you’re aware of the amount that the bank will request as a deposit, and make sure that you are able to afford it. In general, banks usually want a 20% deposit amount from you, so that’s £50,000 if you’re looking at a £250k house, or just £20,000 if you’re hoping to spend around £100,000. It’s important to take this into account when you set your home buying budget. As a general rule of thumb, don’t buy a home that will cost you any more than 2.5 times your annual salary.
#3. Get the Right Services:
Before buying a home, it’s important to make sure that you have hired all the right services, from your mortgage advisor and surveyor, right down to the removals company who’ll be helping you move in. One of the most important people to hire during a first-time home buying process is a conveyancing solicitor; these will ensure that the financial transaction goes smoothly and will transfer the funds from the lender to the previous owner of the home. Click here to get a quote from conveyancing solicitors Bird & Co.
#4. Get the Home Inspected:
Last but not least, if you think that you have finally found the home of your dreams, it’s essential to have it inspected by a professional before you sign any papers. Bear in mind that there can be many problems that arise in homes which are unnoticeable to the untrained eye, but can cause serious and costly issues for the owner further down the line.
Are you in the process of buying your first home? We’d love to hear from you in the comments.
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