Getting a foot onto the property ladder can be a difficult task. However, there are many people who are in a position to be a first-time buyer. If you are a first-time buyer, there are a number of tips that you should consider to make the process of buying your home run smoothly.
Saving Up For A Deposit As A First Time Buyer
Before you look at buying a home, you need to save up a deposit. Most mortgage lenders will require you to have at least 10% of the total cost of the property as a deposit. There are other lenders that will charge anyone who has less than 25% higher interest rates. This means that you should try and have as large a deposit as possible because you will get better interest rates.
Having a larger deposit will lower the monthly mortgage payments that you need to make. You may also be able to get a shorter term for your loan which is something that you should consider. How much you have as a deposit can also tell you how much you will be able to spend on your first property.
How Much You Are Able To Borrow As A First Time Buyer
First-time home buyers need to know how much they are likely to get a mortgage before they talk to any lenders. This gives you an idea of whether or not you need to save more to buy the home that you want. There are a number of mortgage calculators available online which can be used to help you determine this.
The mortgage calculator will look at your savings and your salary to determine a possible loan range. It is important to note that the range provided by the calculator may not be what the mortgage provider offers.
Finding The Right Mortgage As A First-time Buyer
You need to talk to a mortgage lender before you start looking at property. This is due to the fact that you need to know how much you can spend and to get pre-approval. An independent financial advisor should be consulted as they will be able to find the right mortgage for you. It is important that you choose an advisor that is independent otherwise you will only be offered loans from companies the advisor is affiliated with.
When looking at mortgages you should not forget about the fees. Many mortgages will have arrangement fees which can be fairly high so you have to take them into account. It is possible to get a lower fee if you choose to have a mortgage with a higher rate.
Viewing The Properties
Once you have your funding sorted out, you can start looking at properties. You should create a listing of everything that you want your first home to have, but you need to be realistic with this. You should also consider where you want the property to be and what you are willing to compromise on. Many first time buyers do not realise that it is impossible to find the perfect home and you need to be willing to compromise.
You should then contact agents to set up viewings of the property. You need to ensure that you take the time to look at the neighbourhood as well as the property that you are looking at. Having a checklist of items from your list is also recommended as this will ensure that you do not get confused when you compare properties later.
How To Make An Offer As A First Time Buyer
Once you find the property that you like the most, you will need to make an offer. To make an offer you need a dicision in principle you can get this buy going to liverpool mortgage broker. You do not have to offer the asking price, but you should have some justification if you go very low. If your offer is accepted, you should contact your solicitor to start the paperwork.