Easy steps to become a first time buyer.
1. Save for a deposit.
A hefty deposit will make you more attractive to lenders and is likely to give you a better mortgage deal. As a first time buyer it is important to have a decent sized deposit as this lower your monthly mortgage amount too. Survey the market to see what lenders will offer you but aiming for a 20 percent deposit is a good milestone. Remember if you are looking for a property that requires work then you will need an extra pot of cash to do any urgent works once the sale has gone through.
2. Set up a spreadsheet.
You don’t need to be an accountant to get number crunching. Forecasting any costs that you may incur once you have purchased a property will give the opportunity to review how much you can afford to have as outgoings each month. Set yourself a contingency fund will give you some breathing space should any unplanned costs arise such as home improvements caused by a leak or bad weather.
Note: many first time buyers opt for a fixed rate mortgage so that they know exactly where they stand each month, rather than a variable rate that alters as interest rates change.
3. Longevity.
The ideal property is one that grows with you. Therefore many first time buyers push them self as much as they can for their first purchase. However, for some first time buyers this is not possible. If this is the case it is advisable to seek the ideal starter home. A property that requires minimal expenditure to run to enable you to save any extra disposable income for your move to your next property as you climb up the ladder.
4. Seek expert advice.
It is important to think with a level head and not get swept up in the moment. The best way to do this is to speak with experts in the field including estate agents and mortgage brokers. By gathering information you will be in a good position to make an informed decision on your investment, and they will also be able to advise you of how any changes in the market could affect you.