For many first-time buyers, there can be many complications and stresses to worry about when it comes to purchasing your property. One of the biggest concerns is borrowing money and applying for a first-time buyer mortgage.
First-time buyer mortgages are for people who are new to the housing market. Generally, you are considered a first-time buyer if you’re buying a property you plan to live in as your main residence and you’ve never owned a property before. Getting a first-time buyer mortgage might seem like a fairly complicated process, but there are some general steps you can follow. Here’s a helpful first-time buyer guide that we have put together to give you a better understanding of buying a home for the first-ever time.
Get things prepared BEFORE viewing
Many times before, couples or individuals have looked around and found their dream home, but then cannot go through with the purchase because they are unable to afford it or do not qualify for the appropriate mortgage. This is why you MUST have all of this done before you enter the buying process. Not only will this speed the whole process up considerably, but it will also give you the right idea and budget of home to look for.
Search for your perfect property
Search the housing market and get an idea of what you are looking for. How many bedrooms do you need? Do you want a garden? What about a garage or off-road parking? By doing this, you will be able to get a sense of how much money you will need to borrow in order to afford the type of home you desire. Especially if you have children and are looking to move into catchment areas with more bedrooms, you will expect to pay more money towards the house. So by doing your research beforehand can help a lot when it comes to applying for your mortgage.
Plan for your deposit
Any mortgage you take out will require you to place a mortgage deposit. This is an amount of money you pay upfront towards the cost of the property. Usually this figure stands at around 5-10%. However, the higher your deposit as a percentage of the price of the property, the less money you will need to borrow. There are many different money-borrowing options that banks use to help the process for you as a first-time buyer. You can check out Natwest’s website here, as they have also created a guide into buying your first-ever home and applying for a mortgage to do so.
Get an Agreement in Principle
When you’re ready to start viewing properties, it’s a good idea to get an Agreement in Principle. This is a free, no obligation, personalised indication of what a bank may be able to lend to you. It can be used with sellers and estate agents to demonstrate that you may be in a financial position to purchase a property. These are quick and simple to obtain and does not affect your credit score.
The final piece of the puzzle…
When you’ve found a property you want to buy, make an offer through the estate agent. Here at Farr and Farr, we will help you through the entire process of buying your first property. An example includes the documentation you will need to have available when you apply for a property.
So if you are a first-time buyer looking to enter the property ladder, make sure to contact us at Farr and Farr today for more information on buying your first-ever home. Getting on the property ladder may be made easier with the help of a government scheme or a low-deposit mortgage. Other options include:
- Shared Ownership
- 95% mortgages
- Help To Buy ISAs
- Cashback mortgages
- Green mortgages
It all depends on the amount of money you are looking to borrow. Not every option will be right for everyone, so it’s important to consider the pros and cons, to understand what could work for you. Contact us today for more information or for a free quote.