Buying Your First Home - A Simple Introduction
By James Ian Anthony
There's no denying it, being a first time buyer can be scary. There's a lot to take in and a lot of information to process. Add to that all the financial implications, dealing with solicitors and applying for mortgages and it can make for a nerve-wracking time. Buying a property is never simple but the first time that you take the plunge into purchasing a house you can face a multitude of challenges. Getting a mortgage has become more difficult under the new rules introduced in 2014 which can affect your ability to purchase if you don't already have equity in a property. On the upside however you have some advantages that people who are already on the property ladder do not have. Here we look at what being a first time buyer could mean for you and offer some advice on how to secure your first home.
One of the disadvantages of being a first time buyer is that you will have to find a deposit large enough to put down on the property of your choice. These days the larger your deposit the better, at least 20% of the market value. You will also probably need to find a mortgage lender who will be willing to finance your purchase. This has become more difficult since new lending rules were issued in 2014 meaning that borrowers would be restricted to only taking out home loans they could actually afford. This means you will need to provide more evidence to support your application including paperwork to show your outgoings as well as incomings. This may scrutinise expenditure from childcare costs to clothing purchases so bear this in mind in the months before applying for a mortgage. Your application will also probably take longer to process so make sure to apply in plenty of time.
There is an advantage to being a first time buyer however. As you have no property to sell you are not caught in a purchasing chain. This means that you may find it easier to secure your chosen property as you are not caught in the time constraints of purchasers who are looking for a buyer for their own home before they can move.
To make it easier to secure your first home, you should do all your homework before you begin looking for a property. Work out exactly how much you can afford to spend and take into account all your incomings and outgoings. Take the time to assess your finances at least a year before applying for finance and try to cut down on unnecessary expenditure. Try to reduce spending on credit cards and try to pay off any borrowings. Avoid applying for credit in the year before applying for your mortgage. Also be sure to keep your paperwork in order so that you have it to hand for your mortgage application. This will save you time and hassle and will speed up your application.
Once you are in a suitable position to start looking for a property then you will need to choose an Estate Agent. If you are looking to move to the South Coast within the Bournemouth area then I would personally recommend Avenue Estates Sales and Lettings Agency. They have an expert team on hand that will take care of you right from the beginning and will help you find that perfect first home.
Contact them today! http://avenue-estates.co.uk
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