The process of becoming a first-time homeowner is very exciting. It’s that first step towards what would be considered “proper adulting”, where you get to make a huge decision on your own. Something which will have huge ramifications on your life going forward. Thus, it is important that you are prepared for everything before exploring the home buying process. It’s all too easy to make mistakes and at this level of investment, you really want to be certain that you’re making the right decision before going ahead.
1 – Become debt-free and build up your savings
If possible, you should try to avoid getting a mortgage until you are debt free. The last thing you want to be doing is adding to your debt and then putting yourself in a position where you have to pay yet even more. So, work tirelessly to pay off your debts and then build up some savings in the background. If you can achieve this before rushing into buying a house, you will feel much more secure.
2 – Be realistic about what you can afford
You want a comfortable life, so there’s no good buying a big fancy house if you’re only going to be scraping to survive when you live in it. A new home is to be enjoyed, so be realistic about what you can genuinely afford to buy.
3 – Put together as large a deposit as possible
The greater the deposit you put down on a house, the lower your monthly mortgage payments will be. This is something that can give you a significant advantage in the house buying game. So, get your saving hat on and try to work towards as large a deposit as possible. We would recommend that you aim to put down at least 20% on your property before committing to a mortgage.
4 – Don’t forget about closing costs
Don’t forget that closing on a house will typically cost you about 3-4% of the property purchase value. So, not only should you be saving up for your deposit to put on the house, but an additional closing cost to go on top of that as well. It can be difficult to save up so much money in such a short space of time but if you cut back on spending and step up your hustle, you shouldn’t have too much trouble preparing. Unless of course, you decide to go straight through a property development company, in which case you could save yourself a bit of money on the initial purchase.
5 – Get preapproved for a loan
It’s always worth getting preapproved for your loan before starting to home buying process. The last thing you want is to find the perfect house only to have your mortgage lenders decline your application. Get one preapproved and be certain that you are in a position to secure the financial backing. Following that, you will be able to begin the buying process and secure that dream home of yours.
If you’re interested in buying your first home and would like to find a property developer, then its never too early to start searching. Head online and explore the great variety of property developers in the UK and you’ll be certain to find a new-build project that catches your eye.