It is no secret that the age of first time buyers is constantly growing. Even though first time buyers will make up 25 per cent of the market this year, this is down on the 40 per cent pre-credit crunch. Whilst money plays a large role in this, it isn’t the only hurdle holding perspective first time buyers back. Many first time properties are becoming less frequent as current owners are afraid to take the next step up the property ladder.
Making the decision to own your first property is a big step with lots of things to consider. Before even looking for perspective homes you will need to decide on a budget for your deposit. It is important to keep in mind that there are numerous other costs when buying a property, and you will need to consider solicitor fees, moving expenses and survey fees to name a few.
Finding a mortgage is tougher than it used to be, so you need to have the finances available. To increase your chances of landing a mortgage you will need to have a good credit rating. Dave Penny of Southwest Invest suggests that it is helpful to have a few credit cards that you may make monthly re-payments on, so that you already have a credit rating that banks would want to work with.
Once you have decided on a budget and built up a credit rating you should start to think about the area you want to live in. Important things to consider are travel amenities, local schools, the neighbourhood and most importantly, if it is in your budget.
When viewing a property don’t forget to ask about things that are important to you, such as broadband speed and connection alongside your mobile phone’s signal strength. Getting a good surveyor when considering a property will then bring up other important issues, such as damp and electrical issues.
After you’ve found the property you want, you should go to the owners with an offer. A lot of people go slightly below the asking price at first, to see if the owners reduce the price to your asking level (which they usually do,) however if you really like the property and think the asking price is fair, offer the full amount. When the offer is accepted, it is time to start thinking about solicitors.
As soon as the surveyor has been out, read through the report to see if there are any problems. Once you are happy it is time to finalise your mortgage and wait for contracts to be exchanged. After they are exchanged it would be useful to sort out building insurance, as after the contracts are signed, you are liable for the property.
You should then start looking around for movers or van rental for move in day. If you need to buy new furniture, it may be worth waiting until you are in the property to see what it is you really want. In the meantime see if you can borrow from family and friends. Then on the day you get your keys, it is time to make that house become your home!