Key Steps For First Time Buyers – Easy Overview

Getting on the property ladder is a huge step and one that often elicits a variety of strong emotions, everything from worry and stress right through to excitement and elation. Regardless of how you’re feeling about potentially buying your first home, however, being organised will ensure the process goes more smoothly whilst helping to minimise your stress.

Read on for our step-by-step guide for first-time buyers, designed to give you an easy at-a-glance overview of all of the key stages you’ll need to be prepared for.

1. Working out how much you can afford to spend on a home

• Start by assessing your current financial situation, including income, expenses and existing debts.
• Utilise online mortgage payment calculators to help you estimate your budget for a property.
• Don’t forget to add on additional costs like stamp duty, legal fees and home insurance.

2. Identifying any schemes or first-time buyer help available

• Explore government schemes like Help to Buy, Shared Ownership, or the First Homes scheme for potential financial assistance.
• Check the eligibility criteria for these schemes and determine which might suit your needs.
• Learn more by taking a look at resources like First Time Buyer Schemes from the Homeowner Alliance.

3. Saving for a deposit

• Find out how big a deposit you’re likely to need and remember the higher the deposit, generally the greater the range of mortgage deals that you’ll have open to you.
• Budget carefully and work out where you can cut back to help your deposit accumulate more quickly.
• Establish a dedicated savings plan to accumulate the necessary deposit for your home.
• Take advantage of saving options like LISAs (Lifetime Individual Savings Accounts) and Help To Buy ISAs which you can find out more about here.

4. Getting a mortgage agreement in principle

• Approach mortgage lenders for an Agreement in Principle (AIP), indicating the amount they are likely to lend you.
• This provides a clearer picture of what you can afford to borrow and also demonstrates to sellers that you are a serious buyer which can help when it’s time for you to put in an offer.

5. Making an offer on a property

• Research property values in the area to make a competitive yet reasonable offer.
• Consider property conditions, market demand, and your budget when negotiating with the seller.

6. Applying for a mortgage

• Once your offer is accepted, formally apply for a mortgage with the chosen lender.
• Provide necessary documents, including proof of income, employment details, and financial statements.

7. Choosing a conveyancer

• Select a professional licensed conveyancer to handle the legal aspects of the property purchase.
• Obtain quotes, consider personal recommendations and take a look at independent online reviews.

8. UK property searches, surveys, etc.

• Choose and agree on the necessary property searches and surveys to identify any potential issues or concerns.
• Address any necessary issues with the seller through your conveyancer.

9. Prepare for the move

• Plan your move well in advance, consider removal services, child and pet care, time off work etc.
• Research utilities at your new address so you’re ready to get things organised as soon as you exchange contracts.
• Continue packing your possessions away ready for the move.
• Research dentist and GP practices in the area and obtain the relevant forms needed to sign up as a patient.

10. Exchange and complete

• Now, we get to the good bit, and it’s time to sign the contract and progress to exchange contracts.
• Coordinate with your conveyancer to finalise all legal paperwork.
• Complete the purchase by paying the remaining balance and receiving the keys.

11. Moving in

• Rope in some help from friends and family to help, particularly if you’re keeping costs down by utilising a DIY move.
• Update your address with relevant authorities, utilities, and services.
• Close the front door, crack open a bottle of bubbly or chill with your favourite cuppa!

Remember, the home-buying process can be time-consuming and for first-time buyers in particular, the process can be daunting, but with careful planning it can also be an exciting and rewarding experience.

If you have any questions or concerns at any stage, don’t hesitate to get in touch with the experts here and happy house hunting!