Are you a first-time buyer who needs guidance on how to navigate the mortgage and home buying process? Here's a step-by-step guide to buying your first home
The journey to buying your first home can be an exciting yet nerve-racking experience. It’s a significant milestone, which comes with its fair share of worries, writes Darren Polson.
However, with careful planning and the right guidance, you can turn this experience into a smooth and enjoyable process.
Here’s a beginners guide to give you an overview of the process and what to expect.
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Speak to a Mortgage Broker
One of the initial steps in buying your first home is to speak with a mortgage broker. They’ll provide insights into the mortgage market and guide you through the entire process.
By assessing your financial situation, including income, credit history, and existing commitments, a mortgage broker can determine the most suitable mortgage options for you.
Obtaining an Agreement in Principle (AIP) from a lender is particularly beneficial, as it demonstrates to sellers that you are a serious and qualified buyer.
Additionally, your broker will help you gather the necessary documentation, such as proof of ID, address, income, and evidence of your deposit.
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Think about what you need, then go looking
Before you start viewing properties, take some time to pull together a ‘must have vs nice to have’ list. This will help you prioritise your essentials and narrow down your search criteria.
Start your search online, focusing on properties that meet your needs and budget. Schedule in-person viewings to get a feel for the properties and their surrounding areas.
During viewings, consider factors such as maintenance requirements and property age to ensure they align with your skillset and lifestyle.
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Assess the full costs involved
Buying a home involves more than just saving for a deposit. You must also consider additional costs associated with the buying process.
These may include mortgage broker fees, valuation and survey fees, stamp duty, legal costs, and any moving costs. It’s also wise to have an ‘emergency fund’ for any unexpected expenses that may crop up along the way.
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Be consistent
Throughout the house-hunting process, always be mindful of your mortgage Agreement in Principle. It can take time to find the right home and, when you do, the last thing you want is for there to be an issue with your mortgage applications.
Avoid taking on additional credit, ensure your payments are up to date, addresses maintained, and there are no significant changes to your circumstances to avoid any issues with your application.
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Appoint a solicitor
Once your offer on a property is accepted, it’s time to appoint a conveyancing solicitor to handle the legal aspects of the purchase.
Your mortgage broker may be able to recommend a qualified solicitor or conveyancing firm. They will conduct property searches, review legal documents, and ensure that the property meets all necessary requirements to satisfy the mortgage lender.
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Celebrate
Completion marks the final stage of the homebuying process, where all paperwork is finalised, and you receive the keys to your new home. Take a moment to celebrate this significant milestone and reflect on the journey you’ve undertaken.
Becoming a homeowner is an achievement worth celebrating, and it marks the beginning of a new chapter in your life.
Purchasing your first home may seem daunting, but with careful planning, diligence, and professional guidance, it can be a rewarding and fulfilling experience. Remember to seek advice from a mortgage broker who can provide expert support throughout the process. With the right approach, you’ll soon find yourself settling into your very own home and embracing the joys of homeownership.
Darren Polson is head of mortgage operations at Aberdein Considine
