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Buying a new house is a huge investment. It can be intimidating and overwhelming, for those buying a new home but especially if you are a first-time buyer.
Buying a house is the biggest financial decision a lot of people will make in their lifetime and with the twists and turns that come with it, is it really a decision you would want to take on your own? Mortgage brokers are able to help take you through the process from start to finish, no matter how difficult your case is.
With these tips, you will be better prepared when it comes to buying your next or first property and possibly avoid a bit of heartbreak that will be highlighted later on.
Tip #1 - Don't go house shopping before knowing your budget.
This is one of the biggest and most important tips!
We all know this feeling. You walk past a window and you see that pair of shoes, that dress, that new phone and you fall in love, then your heart sinks because you see the price tag and know you can't have it. We have all been guilty of this before, I know I sure have.
You shouldn't have to experience this with your next house purchase. First-time buyers who have never been through the process and don't understand how much lenders will actually give are especially prone to this heartache.
Getting in touch with a broker such as Actuate can stop this problem by letting you know how much you are able to borrow with your current circumstances. This lets you go out and go house shopping with the confidence of knowing that you have the backing of the bank behind you.
Tip #2 - Not having extra funds for other costs
Your deposit is not the only cost associated with buying your new home or your first home.
Whilst getting a deposit is an important part of the process, it is easy to forget about the other costs associated with buying a house and then you get a huge shock when you are faced with the bill.
There are many of these costs and here are a few of them:
Solicitors
Home report
Moving costs
Emergency funds
Stamp Duty
Brokers
Life insurance
It is important to get in contact with a broker who can inform you of all of these additional costs to stop you from getting a shock when it comes to paying it all.
Tip #3 - Take advantage of free money!
Yes, you heard me right. Free money.
Government schemes such as a help-to-buy ISA (HTB-ISA) or a Lifetime ISA (LISA) can give a 25% bonus on what you deposit in them for free!
Taking advantage of these schemes for first-time buyers is absolutely crucial in maximising the size of the home you will be able to buy.
in a LISA you can deposit up to £4,000 per year and obtain up to a £1,000 bonus towards your first purchase. You can also use these with your partner. If you are both first-time buyers you can use both separate LISA accounts and get a bigger bonus.
Tip #4 - Go to a broker over a bank
Whilst you may think that your bank will give you the best deal, they most likely will not.
Your bank is only able to give you the rates they offer, just like any other bank. They are unable to give you other offers from various lenders. If you were to buy a product for hundreds of thousands of pounds you would want to check if you could get the same product for cheaper.
Brokers can do just this, with access to over 12,000 products across 90 different lenders. We can scour the market for the cheapest deals across these lenders which will more than likely save you a bunch of money.
After all, 90 lenders are better than 1.
Conclusion
Buying your next home or your first is a minefield filled with problems around every corner. You'd have hoped that school would have taught you these things. Good thing we are here to be a school of everything mortgages.
To stay ahead of the rest and gain more knowledge of how to buy your first home. Download our free e-book from the link below!
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