A beginner’s guide to buying your first home

A beginner’s guide to buying your first home

Buying your first home is exciting, but it can also be stressful. It is important to do your research and be prepared for the highs and lows.

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Affordability

Before you begin to look at properties, you need to calculate how much you can afford, how much you are likely to be lent by a mortgage provider, and how much you need to save in advance. As a guideline, a 10 per cent deposit is a good starting point. Although this might seem a lot, putting an amount aside each month can soon add up.

You can use an online mortgage calculator to find out how much a mortgage provider could be willing to lend. It is also possible to apply for a mortgage in principle, which will give a good indication of how much you can borrow. This can be especially useful when you are looking for a home in a competitive market.

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There are always hills to climb when buying a property, which is especially true for first-time buyers. Make sure you are aware of the potential problems and are ready to deal with whatever comes your way.

Credit score

You can start by checking your credit score online and sort out any issues before they arise. Although there isn’t a minimum credit score required for buying a house, the better your score, the more likely it is that you will be offered a competitive mortgage rate.

Use a broker

If you are finding securing a mortgage difficult or overwhelming, consider using a mortgage broker to find the best mortgage for you. If you are looking to buy a property in the Watford area, make sure you arrange a building survey Watford when you have found a property you would like to buy.

Deposit

The bigger your deposit, the cheaper your mortgage and the better the mortgage offer. Although some lenders will offer you a mortgage with just a five per cent deposit, this is likely to come with a higher interest rate. For homebuyers in Watford, a building survey Watford will check that the property you are buying doesn’t have any structural or other problems that could cause you problems down the line.

Schemes

There are government schemes available for first-time buyers. It is worth researching what these offer and whether you are eligible.

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