First Time Buyer? Here are 4 Things You Need to Know

March, 2017

Are you a first-time buyer? If so, you’re probably wondering what you need to do to make the process of buying your first home as smooth and hassle-free as possible.

In this post, we’ll look at four things every first-time buyer needs to know to make the first successful steps towards owning a home.

What’s your budget?

Buying a property isn’t cheap. It’s incredibly important to sit down and think about how much cash you have available to pay the upfront fees you’ll encounter when you’re buying a home. With so many costs to account for, including solicitors’ fees, moving costs and stamp duty, it’s all too easy to lose track of what you’re spend and how much money you still have to pay out.

Tip: Create a spreadsheet to keep track of your spending.

How much deposit do you need?

Before you start looking for your first home, you’ll need to save a deposit. The more you save, the better mortgage rate you’ll get and the less you will need to borrow from the bank.

To get a deposit, you currently need a deposit of at least 5% of the property’s value. For example, if you were thinking of buying a property for £155,000, a 5% deposit would be £7,500. You would borrow the remaining £142,500.

Tip: Save as much as you can towards your deposit. This will help you gain access to preferable rates.

What type of mortgage should you get?

With so many options available, it’s hardly unsurprising that first-time buyers report being overwhelmed by the decision of which mortgage to choose. Before you decide which mortgage type to choose, it’s important to arm yourself with as much information as possible.

Tip: Whether you consult an independent mortgage advisor or carry out research yourself, make sure you’re familiar with all your options. The Money Advice Service has published some excellent online guides explaining the pros and cons of various mortgage types.

Have you forgotten about stamp duty?

When you buy a home, you will have to pay Stamp Duty Land Tax (SDLT) on any property worth more than £125,000. SDLT is a progressive tax, which means that the more a property is worth, the more you will have to pay towards stamp duty.

Tip: Use the government’s online stamp duty calculator to work out your Stamp Duty Land Tax.

Find your dream home with Weale & Hitchen

At Weale & Hitchen we’ve been helping people find their dream properties for over 25 years. As an independent estate agency, we’re dedicated to providing our clients a highly-personalised service, and we’re proud to be members of the National Association of Estate Agents (NAEA).

Contact your local branch today and speak to one of our experienced property experts. Alternatively, start your property search now using our online property tool.

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