Buying Your First Home.
Understanding the Home Buying Process
Buying your first home is exciting and nerve wracking all at the same time. When I was looking to buy my first home. I really needed some help and advice. My first home purchase was a tiny one bedroom flat in East London back in 1991 at the height of high mortgage rates of 15% can you believe it? Things did not get better either by 1995 we had negative equity meaning my tiny flat was worth £10,000 less than I had paid for it just 4 years earlier. Buying a home is one of the most important decisions you will make in your life. The process can be daunting, but there are plenty of tools and resources to help you out. The latest news is all about mortgage rates and house prices increasing during and after Covid. There has been a huge boom to the UK housing market post Covid. Prices have boomed particularly in Yorkshire and Cornwall. In the BBC News
How Much Can you Borrow.
Can you afford it? You will need to calculate your payments. With high rental costs buying a property looks like a sound investment doesn’t it? But it is a really good idea to gather all your financial details including your salary details how much savings you have for a deposit. You will also need to consider the upkeep costs for example there will be ground rent and communal maintenance costs if a flat is in a block for example. So you would need to factor this into your costs, expenses.
Gathering Your Financial Documents
Your lender would expect proof of savings and earnings to be able to make a decision on how much they will lend you. It is really helpful to when approaching an Estate agent to get a pre-approved mortgage offer.
Other costs you would need to factor in are your Utility bills, Council Tax, Insurance policies, General living costs such as travel, childcare and entertainment.
Finding the Best Mortgage Lender for Your Needs
Shop around for the best Mortgage lender that suits your needs and can offer you the best deal. Look on Money Saving Expert . com for example.
Finding an Agent who will Represent You in the Home Purchase Process
Shop around Estate agents make sure you look around the areas you wish to buy check out the schools and facilities, shops nearest supermarket the lifestyle you want to live ie bars, restaurants nearby or would you need to drive. Check the % of the purchase price they charge.
Choosing your Dream Home and Making an Offer on it!
Buying a home is one of the largest purchases that you’ll ever make. It’s not just about buying a house, but also about finding the best mortgage lender to help you finance it.
The first step is to start searching for your dream home. Decide how much you’re willing to spend on your new home.
House purchasing can be a daunting task. It involves a lot of paperwork and is not always the best decision. The pros and cons of house purchasing depend on many factors and should be thought through carefully before making the purchase.
There is no perfect time for purchasing a home because there are benefits and disadvantages to it. For example, buying now would allow people to take advantage of low-interest rates, but waiting could result in an increase of interest rates.
Renting and owning your home at the same time can be a sensible option for many people. Renting is good for those who want to avoid the commitment of owning their own home, but want to live in a desirable area. The part ownership option is perfect for those who want to own their own property but are not in any position to buy it outright.
Help-to-buy schemes enable buyers to purchase their first home by providing them with an equity loan worth 20% of the property’s value (or 40% in London).
Home ownership schemes may seem like a good deal, but they certainly do not suit everyone. For example, there are people who simply don’t have the money to buy outright and others who like living in rented accommodation for lifestyle reasons. I am lucky to have got on the housing market when I did but it is a rollercoaster of a ride without the correct helpful advice and information.