It takes a lot of time, money and patience when looking to buy your first home nowadays. Young people have to save for a long time before they can get their foot on the property ladder. But don’t become impatient, buying a home (especially your first one) is one of the biggest decisions you’ll ever have to make.
You need to plan all the costs before you jump. You don’t want to find out that you’re short of cash once the process is already underway; that’ll just cause disappointment for everyone involved. These pointers should help you out before you buy your first home.
Saving for a Mortgage
It’s vital to save as much money as you possibly can before you think about buying a home. Remember, the more money you save, the cheaper the mortgage will be. It might be tempting to go straight in, but you’ll save money in the long term if you save up for a while.
You’ll typically want to save at least 5% of the cost of the home. But I’d recommend saving about 15-20%, this will allow you to get a good deal on your mortgage. But how much you earn will dictate how much you can save.
Planning Your Expenditure
Planning is the key to securing a smooth house buying process. There are so many things that can go wrong, and, for a lot of people, they do. Don’t make this mistake. Keep track of your income and work out, realistically, you can afford to save. And then work out how much the whole process is likely to cost you, adding in some extra costs for emergencies. Then you should be able to work out how long you’ll have to save up for.
Don’t Forget the Smaller Costs
It’s easy to focus on the big costs of buying a home like your mortgage deposit. But don’t let the small things trip you up. Remember, you’ll have the survey, removal costs, legal fees, building insurance and stamp duty to think about. They all cost money and the small stuff can add up quickly if you’re not keeping on top of it. To save money, find reliable legal service providers like Wilson Browne in Leicester.
Picking a Mortgage
It can be hard to choose the right mortgage for you because there are so many different types out there to choose from. If you don’t know the difference between fixed rate and variable rate mortgages, talk to mortgage experts. Tell them the details of your circumstances, and they’ll help you find the right deal for you.
Think Outside the Box
Going down the tried and tested estate agent route can often be a good idea for first-time buyers, but don’t rule out the alternatives completely. Sometimes going direct to the homeowner can be a great way of cutting out the middlemen and saving some cash.
You could even try approaching homeowners who haven’t got their house up for sale. It won’t necessarily yield much success, but it’s always worth a try. If you find a street you like, post a polite letter through the door of each house explaining your situation.