For first time buyers, the process of applying for a mortgage and moving into their first home can be arduous. Obviously, it’s something you’ve never done before, and that brings with it a set of pitfalls that you must be aware of.
A house will be the most expensive thing you’ll ever buy, so you have to take your time with the purchase. It’s important to be fully aware of each aspect of the process, and the financial ramifications of certain choices.
So, just how can you make the purchase of your first home a lot easier? You’re in the right place. The following article will make it easier for you, the first time buyer, to get on that property ladder sooner.
Consider paying fees upfront, or in the long-term with interest
The purchase of any property brings with it a number of fees – and these may not be readily apparent. You’ll have to pay for a survey of the home, which ensures there’s no major damage and gives the lender more confidence with their mortgage loan. There are also solicitor fees, broker fees, and maybe even bank fees.
However, you may not have to pay all of these upfront. Some mortgage lenders offer different packages where they will pay these fees upfront for you. If you don’t have a massive deposit, this can be a good way to save cash initially. However, beware the fact that you will have to pay these fees – it’ll just be added onto your monthly payment.
So, consider the pros and cons of each. Do you pay them upfront, or pay more each month?
Don’t just stick with the first deal you get offered
Just like when you shop for clothes and food, you don’t always take the first deal you get offered. Shop around and soak up different mortgage rates – you’ll probably be able to find one that’s a lot better than you thought you could get.
Different lenders have different rules for who they will lend to. So there’s no way of knowing just how much you will be offered until you book a mortgage appointment. Don’t shake that hand yet!
Look at properties that you can add value to
When you move house you’ll be looking to cut costs, but if you’ve added a ton of value to your first home you’ll have more money to play with. So, when you’re buying your first home, look at properties that are cheaper and need some work doing to them.
It doesn’t have to be a massive amount of work, like a new bathroom suite. But if a property doesn’t have flooring, a burglar alarm or central heating, these things add value to it for when you’re ready to sell. In order to move up the property ladder you have to make money off your purchase. And this would be more difficult to do than a home that’s perfect from day one.
If the property has damage, use this as a negotiating tool
If the property has damp, or a leak, or holes in the ceiling, use this as a bargaining chip to lower the asking price. In some cases, the homeowner will pay for it doing themselves, and in others, you can knock a bit of money off the cost of the home!