Buying a home can be one of the most exciting processes of your life, but it is also a pretty nerve-wracking one. You are dealing with a lot of money and making decisions that are going to impact upon the rest of your life. The housing market ranks among the most mercurial in the world, but things are looking up with sales of first homes rising by 7.5% from 2017.
If you are a first-time buyer looking to get onto the property ladder, it can seem like a pretty scary prospect. And, when you factor in the amount of money that is being talked about, things can feel a little overwhelming. That is why you need to make use of these five tips to help first-time buyers have a smooth and successful transition onto the property ladder.
1. Meet With a Mortgage Advisor
You need to make sure you know what you are getting into when you buy a home, and this means finding out what mortgage you are able to get. This will help you to understand the sort of deposit you are going to need, as well as what you can afford, and will be affected by things like your credit rating.
Statistics suggest first-time buyers will require an average deposit of around £33,000, but this is not necessarily always true. Still, a mortgage advisor can tell you what applies to your circumstances, and this is why meeting with one is essential.
2. Help to Buy Scheme
There are a lot of things you can use to help you out there, including the Help to Buy scheme the government offers. This is a policy where you can buy a home even if you only have a small deposit. By way of an equity loan, or mortgage guarantee, the Help to Buy policy can help you turn a 5% deposit into a 20% one, and ensuring you can get on the property ladder.
This is one of several government schemes you can benefit from as a first-time buyer, and it might also be worth checking out Help to Buy ISAs as well.
3. You Must Plan for the Future
A sensible homeowner is prepared for every eventuality, and this is something first-time buyers often forget. It’s easy to get carried away with finally being a homeowner and thinking you’re winning at this adulting lark. Illness and injury may strike at any time, and it is estimated that household debt will climb to almost 30% by 2023.
In fact, Direct Line found that close to 50% of employers reduce an employee’s wages to statutory sick pay after two weeks. This is why it is important to plan for the future, and make sure you and your family have money saved up — just in case the worst were to happen.
4. Always Research Thoroughly
It is so important that you do your research about where you are planning to move before committing. You’ve got to understand that it’s difficult to get a feel for a particular area, or indeed home, without actually seeing and experiencing it. You should pay at least a couple of visits to the place, and you need to get the property surveyed. There are enough household disasters to contend with at the best of times, and the last thing you want to is to be left with another one to add to the list.
5. Make Use of Estate Agents
The whole process can be a bit overwhelming, and it is sometimes good to meet with local estate agents. They are knowledgeable about the area and will be able to answer any questions you might have. They can also advise you about the sort of price you should offer for the home, and whether there is room for any sort of negotiation. Keeping local estate agents on your side is really important and can go a long way towards helping you make the right choice.
As you can see, there is a lot to think about, but there is also a lot out there to help you. Buying a home can be very stressful, and it often involves spending quite a bit of money as well. So, you will need to make sure you understand and appreciate what is involved and how you can make the right choices for the future. If you can think of any other essential tips for first-time buyers that we haven’t mentioned, please let us know in comments!
This post was sourced for dadvworld.com