Where to start when buying your home

Buying your first home is an exciting milestone, but it can also feel overwhelming. With so many options, financial considerations and decisions to make, it’s easy to feel unsure about where to start.

If you’re a first time buyer wondering how to navigate the property market, this guide is for you. We’ll break down the process step by step, explore helpful tools like budget calculators and discuss schemes such as shared ownership to help you get your dream home sooner.

Step 1: Assess Your Finances

Before you start scrolling through listings, it’s essential to get a clear picture of your finances. Understanding how much you can realistically afford will save you time and stress later.

Use a Budget Calculator: Tools like a first time buyer budget calculator are invaluable. They allow you to input your income, monthly expenses and savings to estimate how much you could afford to spend on a home. This will give you a realistic price range and help you avoid falling in love with properties that are out of reach.

Consider Additional Costs: Remember that the price of a house isn’t the only cost. You’ll also need to budget for:

• Deposit: Usually a minimum of 5-10% of the property price, though larger deposits can help you secure a better mortgage rate.
• Stamp Duty: A tax paid on property purchases over a certain threshold.
• Legal Fees: Solicitor or conveyancing fees.
• Moving Costs: Transport, packing materials, and any initial home improvements.
• Ongoing Expenses: Council tax, utilities, insurance, and maintenance.

Having a full picture of these costs upfront ensures you’re financially prepared for your first home purchase.

Step 2: Understand Your Mortgage Options

Most first time buyers rely on a mortgage to purchase their property. Knowing your options can help you make informed decisions.

Standard Mortgages: The most common type, where you borrow money from a lender and pay it back with interest over an agreed term.

Government Schemes: Various schemes are available to help first-time buyers, including:

• Shared Ownership: This allows you to buy a share of a property (typically 25-75%) and pay rent on the remaining share. It’s ideal if you can’t afford a full deposit or mortgage on a property in your desired area.
• Lifetime ISA: You can save up to £4,000 a year with a 25% government bonus to help with your first home deposit.

Get a Mortgage Agreement in Principle: Before making offers, it’s wise to get a mortgage agreement in principle. This shows sellers and estate agents that you’re a serious buyer and gives you a clear understanding of your borrowing limit.

Step 3: Decide on Your Property Type and Location

Once your finances are clear, think about what kind of property suits your lifestyle.

Property Type: First time buyers often consider flats, new-build homes, or terraced houses. Each has its pros and cons:

• Flats: Often cheaper and easier to maintain, but may have service charges.
• New Builds: Modern, energy-efficient, and often under warranty, but sometimes slightly more expensive.
• Terraced/Semi-Detached Houses: Offer more space and a garden, but can come with higher maintenance costs.

Location: Consider your commute, local amenities, schools (if applicable) and future development plans in the area. A location that fits your current and future needs will make your home a better investment.

Step 4: Explore Shared Ownership

If buying a property outright feels out of reach, Shared Ownership could be a game-changer.

How It Works: You buy a share of the property (usually between 25% and 75%) and pay rent on the remaining portion. Over time, you can increase your share through a process called staircasing, eventually owning 100% if desired.

Benefits for First Time Buyers:

• Lower deposit and mortgage required.
• Easier access to properties in more expensive areas.
• Flexibility to buy more shares when your financial situation improves.

Considerations:

• Rent is still payable on the portion you don’t own.
• Service charges may apply, especially in Shared Ownership schemes in new developments.
• Selling a Shared Ownership property can be more complex than a full ownership home.

Step 5: Start Your Property Search

With finances in order and a clear idea of what you want, it’s time to start looking.

Use Online Portals: newhomesforsale.co.uk offers extensive listings with filters for price, location, property type and features. This helps narrow down options that meet your needs.

Visit Show Homes: If considering new builds, visiting show homes can give you a real feel for the layout, finishes, and overall quality.

Register with Estate Agents: Local agents can alert you to new properties before they hit major portals, giving you a head start.

Step 6: Make an Offer

When you find your ideal home, it’s time to make an offer. For first time buyers, this step can be nerve wracking, but there are ways to approach it confidently:

Research Market Prices: Compare similar properties in the area to ensure your offer is reasonable.

Consider Your Position: Being a first time buyer can be advantageous. Some sellers prefer buyers who are less likely to have chain delays.

Negotiate Wisely: Don’t be afraid to make a fair offer below the asking price, but avoid undervaluing the property.

Step 7: Hire a Solicitor and Complete Legal Checks

Once your offer is accepted, a solicitor or conveyancer will handle the legal side of the purchase. This includes:

• Title Checks: Ensuring the seller has the legal right to sell.
• Searches: Checking for local issues such as planning restrictions, flooding or environmental hazards.
• Contracts: Preparing and reviewing the purchase agreement.
• Your solicitor will guide you through this process, ensuring everything is in order before exchange.

Step 8: Arrange a Survey and Valuation

Even with a new build, it’s crucial to have a survey conducted. Surveys identify potential structural problems, defects or issues that could affect your mortgage.

Types of Surveys:

Condition Report: Basic overview of the property’s condition.

HomeBuyer Report: More detailed, includes advice on repairs.

Building Survey: Comprehensive, ideal for older properties or unique builds.

The survey ensures you’re fully aware of the property’s condition before committing.

Step 9: Exchange Contracts and Completion

Once all checks, surveys and financing are in place, you’ll exchange contracts with the seller. At this point, you pay the deposit and legally commit to the purchase.

Completion usually occurs a few weeks later, at which point the remaining funds are transferred and you receive the keys to your new home.

Step 10: Move In and Settle

Congratulations, you’re now a homeowner!

After moving in, take time to set up utilities, insurance and any minor home improvements. It’s also a good idea to create a budget for ongoing maintenance and unexpected repairs.

Final Thoughts

Buying your first home can feel daunting, but breaking it down into steps makes the process manageable. Start with a clear understanding of your finances using tools like a budget calculator, explore mortgage options and schemes such as Shared Ownership, and take your time finding the right property. With careful planning and the right support, you’ll be well on your way to turning your homeownership dreams into reality.

For first time buyers, knowledge and preparation are key. Explore further home buying resources on newhomesforsale.co.uk to stay informed, compare options and access tools that make the journey smoother. Your first home is not just a place to live; it’s an investment in your future.

Buying your first home starts with assessing your finances and exploring mortgage options or schemes like Shared Ownership.

Next, choose the right property type and location, search through listings, and make an informed offer. Finally, complete legal checks, surveys and contracts, then move in and set up essential services to settle into your new home.