First Time House Buyers Guide - 10 Things You Must Know!

First Time House Buyers Guide - 10 Things You Must Know!

Copyright (c) 2010 Robert GrayBuying your first property - and taking that first step on the property ladder - can be a very exciting but daunting time. We all know that buying a house is the biggest purchase we will make in our lifetimes and the decision to take that step should not be taken lightly. Here are ten things you should know before you begin your quest to become a home owner for the very first time.1. Is buying a property the right decision?

Before you proceed, and commit to any financial transactions, make sure you have weighed up the pros and cons of buying a property and renting one. Buying a property is, potentially, a better long-term investment but you must make sure that you have carefully considered all of the costs (even the hidden ones!) involved in buying a home and make sure you are in a comfortable financial position to be able to do so.2. Can you afford it?Unlike in days gone by, these days you are likely to require a 95% deposit to put down on purchasing your first home. With the average deposit being paid by first time buyers substantially more than it used to be, you need to ensure that you have saved enough to get you past the first hurdle.3. Will you be able to get a mortgage?Most mortgage lenders base their decision on whether to lend you the money to purchase a house on your income, or your joint income if you are buying the house with, for example, your partner. Carry out some research first to ensure that you earn enough to qualify for the mortgage amount you require. Finding out how much you are likely to be able to borrow, and therefore what kind of property you will realistically be able to afford, is a sensible thing to do to avoid the disappointment of discovering you cannot actually afford the dream home you have set your heart on!4. Familiarise yourself with hidden costs!Do not be fooled into thinking that the only cost involved in purchasing a house is the money you have saved up for a deposit. Unfortunately, there are lots of other costs involved in the process of moving house including stamp duty, legal fees, insurance costs, land registry fees, and removal fees. Familiarise yourself with these fees and ensure they have a place in your budget.5. Do your research!Before you go ahead and make an offer on a house, remember the huge commitment you are about to make, and ensure you have done your research into the property and the location in which you are buying. Check out the schools, the local amenities and most importantly, any plans for development in the area which may have an effect on the house you are about to buy. Don't rush into putting down a deposit on your first house but take your time and look at lots of properties before you make sure you have found the one that's right for you.6. Choose a conveyancing solicitor that you are happy with.You will need to instruct an experienced conveyancing solicitor to carry out the legal aspects of your house purchase. It is likely that you will need to visit the solicitor's office to sign documents and have matters explained to you so make sure you choose a firm that is easily accessible to you, and if possible, has been recommended to you.7. Insurance.It is incredibly important that you remember to purchase house insurance to cover your buildings and contents. Shop around to ensure that you get the best deal and make sure you are adequately covered for all likely eventualities.8. Buying to let.If you are planning to buy a property in order to rent it out make sure you have researched this thoroughly and are aware of your obligations and responsibilities as a landlord. In addition, make sure you are aware of the time and cost involved in instructing an agent, finding tenants, maintaining the property and covering the cost of the mortgage during the periods that the property is empty.9. New home incentives/schemes.With new homes being built in almost every location, developers are competing for your money and are offering incentives to first time buyers for 'starter homes' and other properties. Before you get drawn in by these offers, make sure you are fully aware of the terms, and be aware of the small print. Make sure that you are definitely benefiting from entering into these schemes/incentives before you sign on the dotted line.10. Making an offer.When you have found the house you would like to purchase you should make an offer to the vendor. At this point it is important that you discuss figures with your estate agent to help gain an idea of where you should pitch your offer, what the vendor's expectations are, whether they are in a hurry to sell etc.Summary.Buying a property, especially for the very first time, can be stressful at times but if you plan carefully and make sensible decisions with regard to your saving and borrowing, there is no reason why your part in the transaction should not run smoothly.

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