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A checklist for First-Time Buyers

Buying a house can be the most daunting and biggest life decisions that we’ll ever make. So, it’s little wonder that most of you may be a bit scared of the entire process – especially if you haven’t done it before!

A checklist for First-Time Buyers – The Step-By-Step Guide

Buying a house can be the most daunting and biggest life decisions that we’ll ever make. So, it’s little wonder that most of you may be a bit scared of the entire process – especially if you haven’t done it before!

One small mistake can have huge consequences, but with everything to think about, it’s easy for it to go all wrong. Let’s think positively, that may not happen. Here’s a first-time buyer checklist to help you become a homeowner in the smoothest way possible.

First things first, you need to ensure this is the right move for you and the right time to buy. Consider these options:

Can you afford it?

What state is the house market in?

How much do you know about the area that you’re looking at?

Are you moving to a new area?

How do we get ourselves on the property ladder? 

With Brexit on the Horizon and the property market in a current state of despair, it may put some people off when buying or even renting a property. On top of this, it can be difficult to save money when renting, particularly if you live in Doncaster or other bigger cities. But, how do we get ourselves on the property ladder? 

There is no definite answer really, it’s about the amount of money that you’ve saved and what you need for when you come to buy your first home. It all depends on a few factors such as, your location, type of property and the property market during the time that you buy, as well as any negotiation over the house in question. There are also some hidden costs involved that are easy to forget about.

So, how much do I need to save for when I buy a house? Can you actually afford it?

Let’s break it down…

First-time buyer insurance can be very tricky. For many, it is an unknown territory! But, while it’s an additional expense, it is a necessary one. It is unlikely that your Mortgage Advisor in Doncaster will agree to mortgage unless you have buildings insurance in place.

Also, bear in mind that insurance isn’t a one-off payment, but an ongoing one. Plus, it can be affected by interest rate rises.

Stamp-Duty

GOOD NEWS! First-time buyers, when you come to buy your first property under £300,000… you don’t have to pay stamp duty! However, for those buying a property over the amount stated, you are more than likely going to have to pay this extra tax and it’s the inevitable part of the first-time buyer process.

Mortgage Arrangement fees.

You need to work out which type of mortgage works for you, at Mortgages Remortgages, your mortgage advisor in Doncaster we can help you! With over 30-years’ experience you are in the right hands. There are a number of different types to choose from, so make sure you know what you want. If you know what you’re looking for, this can help improve your chances of getting a mortgage.

Remember, your Mortgage Advisor may charge a fee. Ensure you request a mortgage quote beforehand to ensure that you are getting the best deal – This is Mortgage Remortgages’ top tip for you.

Deposit

There’s no particular answer to how much you should save for a deposit for a house. But, here’s a rough estimate – You may be looking at a minimum of 5% of the property value. However, in some cases, this may be higher as in 40%. So, can you afford it?

Buying a house in Doncaster costs a lot of money, but here are some hidden costs that are important to remember…

Surveyor fees (it’s advisable to get a survey before moving in to a new home – but they aren’t free!)

Legal fees (Solicitors, professional conveyancer fees, Mortgage Advisors, etc.)

The Cost of removals (also consider insurance for your belongings while in transit)

Ongoing Costs

After you’ve received the keys and you can confidently call yourself a homeowner (sounds amazing doesn’t it?) You must now be responsible for maintaining your new home. From council tax to utility bills, it all costs money. Don’t forget, you’re a homeowner now, so you need to include costs for furniture, maintenance and decoration as well.

Considering all of this, is this the right time to buy a house?

Why do you need to buy a house?

So, you’ve reviewed the costs and concluded that you can afford it, it is now time for the next big step in the buying a house checklist – note, having everything in order will make the process a whole lot easier.

No one knows what’s going to happen in the property market. However, there are some general rules to follow…

Use a mortgage calculator

Can you afford the monthly repayments you’re committing to? This is what a mortgage lender will be looking for.

It’s likely you’ll also need a mortgage deposit!

Have a mortgage agreement in principle

One piece of home buying advice for a first-time buyer is to have an agreement in principle before you start your search.

Knowing how much a mortgage provider will agree to lend you is one of the most important home buying tips.

While nothing is set in stone yet, and there are no guarantees, knowing what you can realistically afford will help you on your house hunt.

What to look for when buying a house

Once you’ve finished the planning process, you can start house viewings. This is an exciting step in the home buying checklist. But it can also be challenging, particularly if you don’t know what you’re looking for.

Put together your own first-time home buyer list. Write down the type of property you’re looking to live in and can afford. Do you want a new build, or an old property that needs renovation?

However, be realistic. Remember that it’s not always possible to get everything you want for your budget. So, it’s essential you separate your property wants from your needs and are prepared to compromise!

Viewing properties

The key to property viewings is to ask plenty of questions. It’s your money you’re parting with, remember. So, you’ll want as many answers as possible - leaving no stone unturned.

Unsure where to start? There are many questions to ask when viewing a house. Don’t simply consider how long it’s been on the market or whether there’s any other interest. Instead, go deeper. Think about the neighbours, recent building work and the parking situation. Ensure you have the answers to anything that would make you reconsider buying before you part with your cash. When viewing properties, be thorough. Try and visit the property twice, and at different times of the day. If possible, drive by also!

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