It is highly recommended that you make enquiries with potential mortgage lenders, whether that is a bank or a building society, before considering purchasing your first home. This step will see if you can qualify for a mortgage and more importantly the type of property that you can afford.
Having a confirmed mortgage offer in place will allow you to make an offer your first home quickly.
Costs of buying your first home
You will need to budget for the following:
- The deposit of your desired property. This is usually 10%
- The conveyancing fees
- Stamp duty (you are now exempt if you are buying under £300,000)
- The monthly costs of the mortgage
- Home insurance costs
- Council tax and utility bills
- Removal costs
- Ongoing maintenance costs
- The cost of buying any new furniture or white goods
- The cost of surveyor
Buying your first home in the first instance seems expensive. However, it is a willable asset, and you will own the property.
Finding your first property
Search through property sites such as Zoopla and Rightmove. Once you’ve found your desired property, contact the estate agent or property owner and request a viewing.
Making an offer
When you’ve found your chosen property that you are interested in buying, you need to make an offer. It is best to make the offer over the telephone as nothing is in writing at this stage. Once the offer has been agreed and accepted, the estate agent will make the property “sold subject to contract”. This means that the property is going through the legal buying and selling process and neither party have exchanged contracts. Technically this means that the property is still available if the buyer and seller don’t exchange contracts.
Your mortgage lender will conduct a valuation report. This is a reassurance policy for the lender to see whether the property is safe and viable to grant you with the funds to purchase your first home.
A chartered surveyor is like a building inspector. Their job is to assess the property and carry out numerous checks to see if there are any issues with the property. By paying for a surveyor’s report, you can find any underlying issues with the property. The outcome of the surveyor's report can determine how much you pay for the property, especially if there is a lot of additional and unexcepted work required.
Although a surveyor’s report is non-essential, it can be a wise decision on your part giving you peace of mind for unaccounted costs.
A mortgage lender will require by law, that you have home insurance on your new property. Although mortgage lenders may offer you their own home insurance, it is recommended that you shop around. You will need a copy of your home insurance quotation when you meet the conveyancing solicitor to discuss the legal process of owning your new home.
Although not a legal requirement, life insurance is certainly worth considering. Depending on your personal circumstances and especially if you have dependents, life insurance can help to pay your mortgage, if you become critically ill or die.
At Banner Jones, we know that buying your first home is not easy. Our friendly residential property solicitors have helped countless numbers of first-time buyers with their conveyancing needs.
Call for your free no obligation conveyancing quotation today or complete the contact form below.