Ready to take your first steps on the property ladder?
Whether you’re buying in the city or the suburbs, this exciting venture means total freedom and flexibility. When you own your own home, you’ll feel empowered to achieve anything.
Before you get carried away with dreams of moving day, it’s worth doing your research and learning how to navigate the process smoothly. Here’s how to get started.
Understand your budget and mortgage options
Affordability is perhaps the most important consideration when you’re buying your first property.
It’s almost guaranteed that you’ll apply for a mortgage, which is essentially a very large long-term loan to cover the cost of your property. Along with this, most lenders ask for a portion of your home’s value upfront as a deposit.
Using an online mortgage calculator is a great way to find a baseline figure for a property you can afford to buy. In the meantime, building your credit score will give you strong standing to be approved for a larger mortgage.
There are different options available, including:
- Fixed-rate mortgage – where you pay a fixed interest rate for a pre-determined period, paying predictable monthly instalments.
- Variable-rate mortgage – these come with the possibility of fluctuating interest rates, which change according to the lender’s standard variable rate or other key benchmarks.
- Interest-only mortgage – you’ll only pay interest for a specific period, with the remaining balance repaid at the end of the mortgage term.
Choose the right location and property type
Location matters when you’re buying a property, especially if you’re planning to settle down and potentially raise a family.
Neighbourhood research is a very important part of the process and ensures that you’ll be comfortable living in your new area. Alongside knowing about local amenities and property price trends, try to think about commuting links and access to open green space.
You should try to build a fulfilling life that balances work and play – and your home address plays an important role in shaping your routine.
Understand the buying process
Buying a home usually takes several months. If you have any doubts about how it all works or your ability to handle the process, don’t hesitate to consult a property professional to help you.
There are several key steps involved in the process:
- Saving for a deposit
- Applying for a mortgage
- Conducting market research
- Viewing properties for sale
- Making your first offers
- Inspecting and surveying
- Handling the paperwork
In the weeks leading up to your move, it’s worth looking into relevant home insurance policies to stay transparent. Building an accurate quote and making changes effective from your official moving date means you’ll be meeting your legal commitments as a customer.
Think long-term commitment
Finally, don’t forget that when you buy a house, you’ll need to cover costs well beyond the purchase price. These include maintenance and essential household repairs, property taxes, and relevant insurance policies.
Council tax and utility bills are the most demanding long-term costs for all homeowners. Whether you’re buying a house to rent out or live in yourself, you need to be realistic and only commit if you can afford to.
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