Buying your first house is a huge lifetime mile-stone! It can feel like an exciting yet daunting experience. There are so many factors to consider and it’s easy to feel overwhelmed. So it’s best to do some research and gather as much information as you can. In this blog post, we’ll cover eight top tips for first-time buyers that will help you understand the key steps, avoid common pitfalls, and ultimately secure your dream home.
Our Story
In 2019 my now husband, Matt, and I decided it was the right time to buy our first house together. Before 2019 there was never the right opportunity; I’d been a Uni student and moved away for my first job, whilst Matt was studying for his accounting qualifications. Finally, we were living and working in the same place, so we went for it! Neither of us had any experience with buying a house, which made the process feel even more daunting. I don’t think we ever realised we were about to embark on an almost year long journey! But we finally made it and we couldn’t be happier with our little home.
Key factors to consider
- Understand your budget
- Improve your credit score
- Mortgage in principle
- Do your research
- Prioritise your wants and needs
- You’re not just saving for the deposit
- Take second viewings
- Don’t skip a home inspection
1. Understand your budget
Understanding your budget is one of the most crucial steps for first-time buyers. It sets the foundation for the entire purchasing process. Knowing exactly how much you can afford helps prevent you from falling in love with homes that are out of your price range. It also ensures that you don’t overstretch your finances, which could lead to stress or financial instability down the line.
A clear budget allows you to focus your search on properties within your means, giving you a realistic picture of what you can buy. Additionally, it helps you prepare for all the associated costs of homeownership, including mortgage payments, insurance, taxes, and maintenance.
This is why understanding your budget makes first place in my top tips for first time buyers and was the first thing Matt and I did in 2019. There’s a lot to consider and you might find it helpful to work with a mortgage broker. Check out my blog post on reasons to use a mortgage broker if you’re considering this.
By having a solid grasp on your budget, you’ll be in a better position to make informed decisions and move forward with confidence in your home-buying journey.
2. Improve your credit score
Improving your credit score will directly impact your ability to secure a favourable mortgage. As soon as you submit your mortgage application the lenders will review your credit history. They use your credit score to assess your financial reliability. A higher score can translate to lower interest rates and better loan terms.
To boost your credit score, focus on paying bills on time (including your credit card bill), reducing existing debt, and avoiding new credit inquiries in the months leading up to your home purchase. Even a small improvement in your credit score can make a significant difference in the total cost of your mortgage, potentially saving you thousands over the life of the loan.
3. Mortgage in principle
Securing a mortgage in principle is a crucial step for first-time buyers, and it’s one of the top tips for anyone entering the property market. A mortgage in principle is an agreement from a lender stating how much they are willing to lend you based on your financial situation. Whilst it’s not a formal mortgage offer or a guarantee, it provides a strong indication of your borrowing capacity.
This step is important because it not only helps you establish a clear budget for your house hunt but also demonstrates to sellers that you are a serious and a financially prepared buyer. The mortgage in principle usually lasts 30-90 days, giving you time to do viewings and find your dream home!
In competitive markets, having a mortgage in principle can give you an edge over other buyers. It may speed up the purchase process and make your offer more attractive to sellers.
4. Do your research
Doing thorough research is one of the most crucial steps for first-time homebuyers. Understanding the real estate market in your desired area can make a significant difference in your home-buying experience. By researching recent sales, neighbourhoods trends, and future developments, you’ll gain insight into property values and identify what a fair price looks like.
This knowledge not only helps you make informed decisions but also empowers you during negotiations, ensuring you don’t overpay for your new home. Matt and I used Zoopla and Rightmove to research property sales history and nearby sold prices. They quickly became our best friends during the purchasing process.
5. Prioritise your wants and needs
Prioritising your wants and needs is essential for first-time buyers. It will help you stay focused and make more informed decisions during the home-buying process. With so many options available, it’s easy to get sidetracked by appealing features that may not align with your long-term goals.
By clearly defining what you truly need in a home—whether it’s a specific number of bedrooms, proximity to work, or being in a particular school catchment—you can narrow down your choices and avoid falling in love with properties that don’t meet your essential criteria.
Sit down before starting your research or going on house viewings and make a list of must-haves and desirables. This approach will ensure that you find a home that fits your lifestyle and future plans without overextending your budget or settling for less than you deserve.
6. You’re not just saving for the deposit
One of the most crucial tips for first-time buyers is to remember that saving for a deposit is just the beginning of the financial preparation needed to buy a home. Whilst the deposit is a significant expense, there are many other costs involved that you need to be ready for. These include closing costs, such as legal fees, home inspection charges, and property taxes, which can add up to a substantial amount. Check out my blog post on what fees you pay when buying a house (including a rough estimate on cost).
Additionally, you’ll need to budget for moving expenses, potential renovations, and ongoing costs like homeowner’s insurance and utilities. It’s also a good idea to save for ‘just in case of emergencies’ as there is no guarantee there won’t be problems when you get the keys. On our moving day the boiler broke, there went a few thousand!
By planning for these extra expenses early on, you’ll avoid financial stress and ensure a smoother transition into homeownership.
7. Take second viewings
Taking second viewings allows you to see the property with fresh eyes and catch details you might have missed the first time. The excitement of a first viewing can sometimes cloud your judgment. It may lead to you overlooking potential issues or overestimate the property’s suitability. Check out my blog post on 12 things to look out for when viewing a property.
A second visit gives you a chance to assess the property more critically. You can evaluate the neighbourhood at a different time of day, and consider how the layout and features align with your long-term needs. It’s also an opportunity to ask additional questions or bring a friend or family member to offer another perspective. Ultimately it will ensure that this is truly the right home for you before making a significant financial commitment.
8. Don’t skip a home inspection
A home inspection is a crucial tip for all first time buyers and I would highly recommend to anyone when buying a second-hand home. It will offer invaluable peace of mind and protection. If you apply for a mortgage all lenders will inspect the property. However, often a mortgage lender may simply drive by the property to check it exists rather than go inside and inspect the facilities.
I would recommend paying the extra few hundred and get a surveyors assessment. They will delve into the condition of a property more thoroughly. This can uncover potential issues that may not be immediately visible during a standard viewing done by mortgage lenders. From structural problems to outdated electrical systems or hidden plumbing issues, a thorough inspection reveals the true state of the home, enabling you to make an informed decision.
Without it, you risk facing unexpected repairs and costly surprises after closing, which can be financially burdensome and stressful. Our inspection (which cost £400) revealed many issues that allowed us to renegotiate the price and saved us thousands. By investing in a home inspection, you safeguard your purchase, giving you leverage in negotiations and ensuring that your new home is a sound investment for the future.
Final thoughts..
Embarking on the journey to homeownership can be both thrilling and overwhelming, but with these eight top tips, you’ll be well-equipped to navigate the process with confidence. By understanding your budget and thoroughly researching the market, you’ll set a strong foundation for your search. Prioritising your needs, thinking about future growth, and never skipping a home inspection will help you make informed decisions. With the right preparation and mindset you’ll be ready to find your perfect home. Happy house hunting!
