Important tips for first time buyers

Buying a home can be a daunting yet exciting prospect, particularly if you are a first time buyer that is just starting out on the property ladder. It is important to remember that you need to put plenty of thought into buying a property, as you need to find both the right property and the right mortgage to fund your home. For first time buyers this can be a very exciting period, but it is not without its problems, and can cause stress and frustration. However, with a few simple tips you can make the most of this experience, and you can increase your chances of finding a suitable property and the right mortgage.

Checking affordability

The first thing you need to do as a first time buyer is to determine whether you can actually afford to make repayments on a mortgage. It is important to therefore do some calculations in order to make a more informed decision with regards to whether now is the best time to purchase a home. You need to remember that it is not only the mortgage repayments that you need to think about, but also day to day living costs and bills, not to mention any existing debts. Firstly, work out what your total monthly income will be. You should then make a list of all of your outgoings, such as debts, subscriptions, and any other regular outgoings. Add to this a list of bills that you will need to pay along with approximate costs – this includes things such as council tax, utilities, phone or broadband, home insurance, television license, car insurance installments, etc.

You then need to add day to day living costs such as weekly or monthly groceries, petrol, travel, going out, clothes, etc. Finally you need to look at how much you have left to go towards mortgage repayments. It is important that you do not overstretch yourself – you need to leave a little flexibility for emergencies or even for interest rate rises if you plan to take on a variable rate mortgage. If you feel that you have enough left over to comfortably afford mortgage repayments, and can handle any increase in rises then you may be okay to look at getting a mortgage.

Finding a mortgage

Although many people start looking for properties and then apply for a mortgage afterwards, this can prove to be a disappointment, as you may find that you cannot get a mortgage for the property that you have found and set your heart on. Therefore it is a good idea to look for a mortgage first and get an approval in principle. Once you have done this you will know exactly what your budget is, and you can avoid wasting your time looking at properties that you cannot afford. You may also find yourself in a favourable position when it comes to getting the home that you want, as the vendors usually prefer to accept the offer of someone that has already been approved rather than someone that could find themselves turned down for a mortgage.

Get the right advice

As a first time buyer you may find the world of mortgages totally baffling, as there are so many mortgage products to choose from. In order to avoid getting the wrong mortgage for your needs it is a good idea to get some professional advice. An experienced independent financial advisor could prove invaluable in cases such as these. However, try and opt for an adviser that charges the fee to you as the customer rather than one that takes commission from the lender. This is simply because the adviser is more likely to work in your best interests if he or she is not taking into consideration commission levels that are paid from lenders, whereas those taking commission directly from the lender may be more interested in which lender pays the highest level of commission. Although paying upfront means finding a small amount of cash in advance it also means truly independent advice, peace of mind, and the chance to save a fortune in the long run.

Avoid rushing into any decisions

Many first time buyers are so eager to get onto the property ladder they don’t stop and think about the important issues, such as whether they will be able to afford the mortgage long term or whether the property is going to prove suitable for them. Never feel as though you need to rush into a decision either about the property that you are purchasing or about the mortgage that you opt for. This is a long term and very important investment and therefore needs careful consideration and thought.