First Time Home Buyers Top Tips
It is one of the most exciting, daunting and potentially risky purchases in your life! Your first home.
The RICS site offers significant data and assets including help projects, endorsed lodging directing organisations, homeownership vouchers and motivating forces for purchasing RICS properties.
*The first thing buyers ought to do is decide the amount they can manage. It is vital to consider the deposit, setting up home costs, closing expenses, broker commissions and property holders protection. Look closely at expected monthly outgoings and decide how much you can afford.
The usual deposit required is 20% these days. The 100% mortgage days are over for now. This does make is difficult to get onto the housing ladder. Take your salary or salaries and times by 3 to estimate how much you may be able to borrow. Again this is quite low, and 10 years ago you could be looking at 5 times, and even 6 times.
Where do you want to live? Spend a lot of time making this decision! Its nice to live in a village but everybody knows each other – and sometimes their business, living in a barn on a hillside would mean not many neighbours (think long-term, families, kids and their friends).
Once you have a place in mind, find an estate agent and get to know them. Have them working for you. If they know your budget, location and requirements, then they will work for you. Just like in the popular TV show “Location, Location, Location”!
Whilst house hunting don’t take out any credit, (don’t even apply for any!) for example on new furniture or a new car. This will effect your debt-to-income ratio, which in turn can impact on the mortgage size you will be allowed.
Once you find a house, when you are ready make an offer. Make sure you have the homebuyer surveys done. There is a handy RICS homebuyers surveys guide available. There are 3 types of reports; condition survey, homebuyers report and building survey.
Check planning permission for the area. Councils normally have an online database which can be searched. Imagine buying a house overlooking a field, to later discover that new houses are to be built there. As well as the inconvenience the value of your home would most likely drop by several thousand.
Home surveys will detail imperfections and defects. It is crucial to have this information this BEFORE you buy the house. It is a worthwhile investment which can save you thousands.