First time buyers - how to get started with buying a home of your own
If you haven't ever bought a home of your own, it can seem like a very mysterious process. What are you supposed to do and in what order? How do you know if you can buy a property or not? So, in this article, we will shed some light on the process and show how you go about buying your own home.
If you are thinking about buying your first home, it can feel quite daunting and we understand how exciting and yet terrifying the whole process can actually be.
Some people are excited about moving out of rented accommodation or from the family home while others are anxious about the amount of responsibility, paperwork, and money this move involves.
So what do you need to have in place to buy a property?
1) Finances
Mortgage brokers and lenders will usually offer a free initial consultation to show you your options available for financing. They'll explain how much you could borrow and how much deposit you'll need to buy a property. You will need some cash deposit and this is your input towards the purchase price of the property and a mortgage for the rest of the balance. The minimum deposit required is usually 5% of the purchase price.
The amount you can borrow will be calculated based on your earnings and the amount of deposit you have available.
Once you know your budget, it's time to look at some properties!
2) Property Search
Figure out what you require in a property for it to be right for you. What, if anything, would you be willing to compromise on as there’s no such thing as the perfect property.
Register your details for Heads Up alerts for the features you're looking for in a property. This way, you'll be notified as soon as a suitable property comes onto the market - before the property is listed on the property websites.
3) Viewings
You won't buy a new home without seeing it first, so you'll need to arrange viewing appointments. Sometimes this may be an appointment you make to fit in with your daily life. However, depending on the seller's and agents' preferences, it could be an open house appointment. This will mean there'll be other potential buyers viewing the property at the same time. It will also mean that the date and time of the appointment are set. If you can't make the time, you may be unable to view the property before another buyer has already made an offer so try and be as flexible as you can.
4) Offers
Once you've found the home you wish to buy, it’s time to make an offer. Take guidance from the agent about the interest levels that the property has had. For example, if you're competing with several other buyers all wanting to make an offer, you won't have much room to negotiate. But if no other buyers are interested, you may be able to negotiate the price a little.
Don't offer more just because you want to 'win' the property. Make the best offer you can afford without struggling to raise your finances. Otherwise, you will likely find out that if your offer is accepted, you won't be able to pay the price, and you'll have to pull out. This is not only soul-destroying for you and the seller, but it could result in paying fees to solicitors and surveyors that end up being lost.
Be realistic, and show the agent that you're pre-approved for the funding so they can confidently make your offer to the seller. Be prepared with proof of your deposit and mortgage agreement in principal.
5) Employ the professionals
Once the offer is accepted, it's time to build your team of professionals. Find a conveyancing solicitor to represent you in the transaction and inform your mortgage broker to start the application for your mortgage.
So there you have it.
At each stage, the estate agent will help and guide you, so if you have any questions, just ask! Estate agents are happy to help. You don't know what you don't know, and estate agents are there to help you.
As always, if you have any questions or if you’d like some general advice about the Romford property market, get in touch using the details below.
07969 638349
duncan.kaye@keysandlee.co.uk
