Buying a home is a big step, and it can be discouraging if you are ready to take it, but there are things standing in your way. You want purchasing a home to be a positive experience so it is important to make sure that you are ready for it when the time comes. Here are five things you need to do to get ready to buy a home within the next year.
- A deposit
There is no standard amount that people need to have saved up before they can get a mortgage. But a basic principle to keep in mind is that the bigger the deposit you have, the cheaper the mortgage deals you will be able to get. This is because the more money you have available to put towards a house, the less of a risk you pose to a lender. In recent years first time buyers have typically used a 20% deposit to buy a house. If you are struggling to save a large deposit however there are still many mortgages out there for first time buyers.
- The market
As you get ready to buy a home, start to pay attention to the market in the areas where you want to buy. This can help you understand what homes are selling for and what to expect when you start looking. It gives you time to understand schools, transport links to work and other factors that may play a role in where you buy a home. Even as a first time buyer you should plan on staying in a home for five years so schools could become important even if they aren’t now.
- Your budget
Analyse your income and outgoings and identify areas where you could cut down. Cutting back on small things, like buying lunch or a coffee at work every day, can make a big difference over time. Look at utility bills as well. Look at how much you can borrow but look at the repayments in terms of your monthly budget.
- Talk to a mortgage broker
Get an agreement in principle to a mortgage. Working with a mortgage broker will enable you to get advice from across the market, meaning you can get a clear indication of what you will be able to borrow, and the likely repayments. A local mortgage broker will be in a good position to advise on the most appropriate mortgage for your circumstances, and will be familiar with market conditions locally.
5. Register to vote
If you aren’t on the electoral roll at your current address, get on it now. Lenders will check that you’re on the electoral roll at your given address when deciding whether to lend to you as a precaution against fraud, so it’s vital that you’re registered. Just one of things you might not think about when planning to buy your first home.
With these points covered you are ready to start the exciting part of the journey, finding your first home. As it is the biggest purchase in most people’s lives it needs careful planning to make the most of one of the most memorable times in your life. Get in touch and find out how we can help.