While there are many real estate metrics that drive economic growth, the confidence of first-time buyers is pivotal. This is because of high levels of sentiment among this demographic are indicative of an accessible property market, while they also suggest that national earnings are growing at a healthy rate.
The fact that the current first-time buyer market has bloomed in recent times has therefore been greeted with warm enthusiasm. Empowered by government schemes such as help-to-buy and its accompanying ISA, first-time buyer sales climbed by 11.9% during August and matched July’s eight-year high figures in the process.
Our top tips for first-time Buyers
With this in mind, here are our top tips for first-time buyers who are committed to making an impact in the property market. These include: –
Seek out Independent, Expert Advice
Before you attempt to conquer such a vast, complex and competitive market, you will need to develop a broad and informed knowledge base. This can only be achieved by liaising with independent mortgage industry experts, who will offer impartial advice based on your existing circumstances, credit history and available financial resources. This type of insight is invaluable, as opposed to the type of subjective advice from those who are trying to win your custom. To gain some understanding of how independent mortgage advisors can help, take a look at the Openwork website.
Manage your Expectation when dealing with Lenders
If knowledge is an important weapon to own as a first-time buyer, it is also crucial that you adopt a positive and worldly mind-set. The main advantage of this is that it enables you to manage your expectations when dealing with lenders, as you understand that not every financial body will respect your credentials as an applicant. Clearly your credit score is the primary factor in this, as each lender has an alternative method of appraising applicants and their status. The size of your deposit and the employment status that you hold are also variable considerations so do not be afraid of rejection or comparing the market in detail before finding a suitor.
Focus on Saving and Improving your Credit Rating
Even if you believe your credit record to be positive, there is no harm in optimising this and ensuring that you have the best chance of securing a mortgage. The process of enhancing your credit rating may also improve the terms of your future repayment, so looking to manage your financial affairs and opening positive lines of credit are important parts of the application process. In addition to this, you should also focus on building as large a deposit as possible, as this will reduce the amount that you need to borrow and lower your debt burden, While you can theoretically buy a home with a 10% deposit, anything in excess of this makes it far easier to access the market and secure affordable housing.