With the housing market in the UK recovering due to the improved economy and the help the Government has given to first time buyers more people are looking to purchase their dream home but what steps should you be aware of if you are a first time buyer.
The first part of the process you need to consider is a deposit. This can range from 5% – 10% of the property value you are intending to purchase. Your deposit can be from your own savings or with the assistance of your parents but the mortgage company may ask to see proof of any help your parents are giving you.
It is also beneficial to get your credit report to ensure that the information that has been recorded is accurate as so many people discover things that should not be there.
Once you have these too things sit down and work out your current income and expenditure as accurately as possible to help determine what you can afford. You can get the help from a mortgage advisor at this point to help determine your affordability and the size of mortgage you can comfortably afford.
Remember at this point you will have some extras you will need to consider when working out your income and expenditure especially if you are a first time buyer which will include buildings insurance and council tax. For the council tax take an average for the area at this time but when you are viewing a property ask the estate agent which band the property is in for council tax and the current monthly cost and you can then pass this onto the mortgage advisor who will record the exact figure on your file.
Many first time buyers have an added bonus in the housing market which they do not realise which is they do not have a property to sell and this can be a big advantage when putting in an offer for the house as many sellers will prefer your offer as it is less likely to fall through as you have nothing to sell. If this applies to you it may save you a few thousand pounds from the price of the house but this will also depend on the interest showing by others in the property.
Speak with your mortgage advisor prior to putting your offer in for the house as their experience in these matters is worth it as they may know something about the property.
When you have found the house you want you will also need a solicitor and your mortgage advisor may know of one but if not phone a few local ones or search online as you will save some money on this part of the process by simply shopping about.
You will also need to have the house surveyed which again you will have to pay for but I am sure your mortgage advisor will have a panel they use at favourable rates and are also on the mortgage lenders panel which is very important.
Buying your first house can be a daunting process but wherever you live in the UK you will get further information and friendly free advice at https://www.90mortgagesuk.co.uk