The Complete Guide to Successfully Purchase Your First Home

Purchasing your first home is a significant milestone representing a big shift in your life. While it's an exciting venture, the process can feel overwhelming. However, with thoughtful planning, financial readiness, and informed choices, you can effectively navigate the path to owning a home. This detailed guide will outline crucial steps and considerations, equipping you with the confidence and insights to embark on your journey towards finding your first property.

Reviewing Your Financial Position

Before delving into the property buying process, we suggest starting your journey by thoroughly evaluating your current financial situation. Focus on three key aspects of your financial status.

Savings:  Start by evaluating your savings to determine your down payment and legal costs. 
Spending Habits:  Review your spending habits to identify areas where you can cut back and increase savings, improving overall affordability. 
Credit Score:  Your credit score plays a significant role in mortgage eligibility and interest rates, so be sure to review it and take steps to improve it if necessary.

Government Schemes for First-Time Homebuyers

If you're looking to buy your house for the first time, make sure to check out the government initiatives available to assist you on your journey:

Help to Buy: This scheme helps you purchase a new-build home with a minimal 5% deposit. It includes a loan of up to 20% (or 40% in London) of the property's price, interest-free for five years, making it easier to access a mortgage with a lower initial deposit.
Shared Ownership: This program enables purchasing a share of a property while paying rent on the remaining portion. The aim is to increase ownership gradually until you own the property outright, making it possible to enter the housing market without covering the entire purchase price upfront.
First Homes Scheme: The first home scheme provides new-build homes at a minimum 30% discount from market value, prioritising locals, and essential workers to enhance housing affordability and community development.

Exploring these government schemes offers valuable opportunities, empowering you to proactively pursue your goal of homeownership.

Mortgage Options for First-Time Buyers

Understanding the basics of various mortgage options can help simplify the process and help you choose the right one:

Fixed-rate mortgages provide stability with a set interest rate for a specified period, typically two, three, or five years.
Tracker mortgages fluctuate with interest rates, offering initial competitive rates, but these interest rates will rise if rates increase.
Offset mortgages link your savings to your mortgage balance, reducing interest payments.

Each option has advantages and considerations, so it's crucial to carefully evaluate them based on your preferences and financial situation. First-time buyers often prefer fixed-rate mortgages for stability and risk mitigation.

Choosing the Right Property

To find the perfect first property, you must ensure it aligns with your needs, preferences, and lifestyle. Begin by outlining your requirements, which may include:

Type of property
Desired location
Size of the property
Potential for renovation

Additionally, we suggest using house viewings as opportunities to ask important questions and gather information about the property's condition and surroundings. Conducting some research before attending your viewings and preparing questions can maximise the benefits of each viewing.

Organising a Conveyancer and a Survey

Once you've found the ideal property and your offer has been accepted, the following steps typically include appointing a conveyancer and arranging a property survey.

Getting a conveyancer service is standard procedure when buying a property. They oversee the legal transfer of ownership from the seller to the buyer. For first-time buyers, enlisting a reputable conveyancer who can manage this process smoothly and efficiently, minimising any potential risks or complications is crucial.

Similarly, we recommend conducting a property survey as part of the purchase process. This assessment helps evaluate the property's condition and identifies any issues before you finalise the purchase.

By prioritising these steps, you reduce the likelihood of obstacles emerging during the final stages of the purchase, ensuring a seamless and successful transaction.

Conclusion

As we have explored, the home-buying journey involves informed preparations to ensure the best results. By following the steps outlined in this guide and seeking guidance from professionals where necessary, you will be well-equipped to start the process. 

If you're in the process of buying a property and need to sell your current house quickly, the team at We Buy Any House can sell your house in as little as three days.