If you are first-time buyer, it is crucial that you understand the variety of costs to come and how you can improve your chances of buying a home. Taking these into account will ensure that you can manage your mortgage repayments without dragging your budget into the red zone.
We know that it is really hard for first-time buyers to set foot in their dream home! It took us a while to buy our first house together and we have all been there! We know it is very difficult to buy a house when you have no help.
It is important that any first-time buyer should have a reality check before they even commit themselves. Getting their house repossessed is the last thing they need! My advice to first-time buyers is to always have an emergency fund set aside for any rainy days. Of course, emergency funds are just a part of the cost!
First and foremost, you need to check what you can afford, to avoid disappointment or check if you are eligible for the government’s Help To Buy scheme. Ask yourself: are you a UK resident aged 16 and with a valid National Insurance number? Are you a first-time buyer? Have you contributed to a Cash ISA in the last tax year? Ellison Thomas has created this infographic to give you a better picture of the government’s Help To Buy scheme for first-time buyers, and to provide a clearer picture of how the scheme could help you to get yourself onto the property ladder.
Once you know what you can afford or if you are eligible for the Help to Buy scheme, you need to secure a mortgage agreement in principle, but do remember they are only valid for six months!
Next, do your homework by getting know to the location and start looking for your dream home! There are a lot of first-time buyers buying older properties these days, as they are more affordable and offer a bigger renovation scope than new builds. As a result, when renovation works are necessary, the house price should reflect these additional costs. The complexity of the renovations can lead to unforeseen expenses and issues. Are you prepared for these extra costs?
Have you seen your dream home? Remember that you should never offer the asking price, as you can always increase your offer bit by bit. Negotiation is the key to success if a lot of work is needed to be done on the house.
Once both you and the seller agree to exchange contracts, there is a legal process that is associated with buying and selling a property. It is a called conveyancing and refers to the legwork of transferring the ownership of a property from one person to another. You need to plan for the legal fees that come with this process. Also, you might also want to offer to buy some of the seller’s furnishings.
Moving is not free! Yet again, there are more costs involved in this move and it is another thing you should consider. Of course, if you have family and friends who can offer their help, it would probably lighten some of the costs!
In conclusion, buying a home is not just an investment that stops at the cost of your house. There are a lot of costs to be considered like legal fees, renovation works, decoration, moving costs, and other expenses to be taken into consideration.
Disclosure: This is a featured post.