Buying a house is a roller coaster of emotions! You’re excited, nervous, anxious, overwhelmed, happy… It’s easy to let these emotions cloud your judgement; not something you want when you’re about to make one of the biggest purchases you’ll make! You want to go into the process with an open mind and try avoid making many mistakes. After recently purchasing my first house with my partner, Matt, we’ve had the chance to think back over the experience and WOW we have learnt a lot. There are so many things we wish we had known and wanted to share what the reality of searching for your first house is like!
Our Story…
In 2019 my partner, Matt, and I decided we wanted to buy our first house together. We met in 2016 and have been together ever since. Before 2019 there was never the right opportunity to buy a house; I’d been a Uni student and lived away for my first job. 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 before 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.
1. Know What You Can Afford
It’s so easy to view a property, fall in love and picture starting your life there. But… then you realise it’s way out of your price range and you’re suddenly brought back down to earth! Why put yourself through that pain? I would always talk to someone professional about your finances before you visit a property. Before we visited our first property we spoke to a mortgage advisor; she was able to tell us the maximum mortgage value and the maximum property value we could afford. You need to start your house buying journey knowing what you can afford and be realistic.
2. You Need A Mortgage In Principle
A mortgage in principle is a statement from a mortgage lender saying that they would be happy to lend you a certain amount of money. THIS IS NOT THE SAME AS HAVING YOUR MORTGAGE APPROVED! It is a good idea to do this at the start of the house buying process (and can be arranged if you meet with a mortgage advisor). It is really simple to apply for and you only need basic information such as personal details, income and expenses (bank statements).
Usually once you’ve applied the lender will do a soft credit check and you can be approved on the same day! You use your mortgage in principle to show to estate agents and other home owners that you are serious about buying and would be able to secure a mortgage. Estate agents might ask you to prove you have a mortgage in principle before viewing a house (so they know you aren’t wasting their time). Otherwise they will ask you for your mortgage in principle once you’ve made an offer. The home owners we brought our first house from would only take the property off the market once we had sent over our mortgage in principle (so they knew we were likely to have a mortgage approved).
Usually your mortgage in principle is valid for 90 days, so if you’re still looking for a house past this point you might need to re-apply. After you’ve had your offer accepted you can then apply for your mortgage. You can have a mortgage in principle approved but have your mortgage application rejected.
3. Your Dream Property Might Not Be On The Market
If you’re anything like me I bet you’ve come up with a list of what you want! It’s easy to get carried away; 3 bed, ensuite, garden, off road parking, garage, good schools, kitchen island, walk in wardrobe, hot tub?! Well maybe one day.. You need to be realistic! Prioritise what are the essentials and your desires. Do plenty of research and see what other properties sell for and what your budget will buy you.
It’s really easy to build a picture of what your house will be like and then be disappointed when you can’t find it online! Unless you’re building from scratch it’s unlikely that a house is exactly how you want it. Try to have an open mind and look at the bigger picture; does the property have potential? Try to look beyond how the sellers have decorated it- you can easily change that! Focus on the structure of the house and the space it has to offer.
4. Don’t Get Carried Away
Buying your first house is such an amazing experience and it’s so easy to get carried away on each home viewing. Sometimes you’re so keen to actually move into your first home you start to overlook things. Take your time, there’s no need to rush your decision. If it doesn’t feel 100% right then it probably isn’t the right one. If you are able to wait then take your time; new houses come on the market every day.
5. Researching Takes Time
Researching houses is a much bigger job then I ever imagined! It’s good to know everything you can about a property; it will limit the amount of surprises if you buy the place and will be a good guide to how much the property is worth!
Look beyond property websites and estate agent pages! Look at the local crime map, check if there is a neighbour watch page, check Facebook pages for the local area and see what residents have to say or google what is going on locally, take a look at the property sale history, look on a map and see what amenities are nearby and see which way the garden faces, you can even check what broadband is in the area (if you use the internet a lot this might be important)!
6. Don’t Always Trust The Sellers
I think this was the hardest pill to swallow for Matt and I. We both are quite trusting people and wanted to believe the estate agents and the sellers that we were buying our house from! But you have to remember that they have their best interests at heart and want protect their money- not yours! Our sellers hid lots of problems with the house and refused to pay for problems that we picked up on, which put us in a really awkward situation. So my advice would be always protect yourself, do your research and pay for additional checks on the house.
7. Pay For A Survey
When you buy a house you can pay £400+ for a survey. A survey is conducted by a trained professional who will examine the condition of the house and report back any concerns they have with the property. You can then decide whether to ask for a reduction in price, ask the sellers to fix any majors concerns or walk away from the property. You might find out at this point that there are major structural problems that could cost thousands to fix! Better the sellers pay for it then you!
8. The Survey Will Pick Up Problems
Our mortgage advisor told us that the survey will almost always pick up problems; because no house is perfect! So it’s important to identify the big problems which would cost you the most money and would need fixing to live in the property comfortably. Red flags include structural problems, damp/ mould, poor condition walls/ceilings/ roof, unsafe electrics or gas/ plumbing. It’s best to talk through concerns you have with someone involved in your house purchase (i.e. your surveyor or mortgage advisor). Remember don’t panic if several things are identified; some of the small things picked up in ours included the fence needing re-painting, re-pointing outside and guttering re-decorating. Bigger things picked up in ours included out-dated/ unsafe electrics, broken fire escape window, insufficient insulation, crumbled loft wall (truthfully the list went on)…
9. You Don’t Have To Offer What The Property Is Listed At
Property prices are guidance! After doing research on the property you might think it is over-priced and might have a different value in mind. You don’t want to offer something which the sellers might find offensive, so you need to have the right balance. It might be worth discussing this with a professional, like a mortgage advisor. I would avoid talking to the estate agents selling the house, because they are on the side of the seller and want the best price possible!
On the flip side the property might be highly desirable and you need to pay more than the asking price. Often the estate agents selling the house might tell you other people have also made offers. In which case it might be a good idea to consider the value you are offering because you are now in competition with other people. Only offer a value you are comfortable with and make sure you aren’t going over your budget!
10. You Need More Money Than You Think
Buying a house is expensive! I think one of the biggest expenses is the deposit and when you think about saving I guess this is the biggest thing you’re saving for. But there are fees to pay! If you’re buying your first house you have survey/ valuation fees, mortgage/ lender fees and legal fees, which cost us approximately £2500- £3000! However if it isn’t your first house you have to pay these plus stamp duty (varies depending on the property value but easily thousands of pounds). If you’re selling a house too then you also have all the fees associated with that (selling fees and removal fees). Either way you need more money than just your deposit. Plus it is wise to have some money left over in case there are any problems when you move in. Our boiler broke the first day we moved in, there went £3000!
11. It Can Take Up to 8 Months
Not only is buying a house expensive but it also takes time! It’s easy to feel impatient but remember there are a lot of background checks being carried out by the mortgage company, solicitors and council (all things which are out of your control). Try to relax and keep telling yourself it will be worth it! The thing which takes the most time are the checks by the council. Your solicitor will request information from your local council and often it takes them weeks or months to respond.
You might encounter delays because of the survey (if you find a problem you might need these fixing or try re-negotiate the price), the mortgage application (lenders might want more financial information), council checks or solicitors. These are the main areas which take time and the more problems there are the longer it will take. Also if a property is in a chain (meaning the seller is buying a house, etc), this can add time on to your sale because you’re waiting for other people to also move house. Our sale took the best part of 5 months!
12. You’re Going To Make A Lot Of Phone Calls
My phone was a hive of activity during the house buying process. If it wasn’t me calling the estate agents to book a viewing or the solicitor for an update, then it was the mortgage advisor asking me for details or our surveying letting us know the results! It can feel very overwhelming, but keep telling yourself one day soon you will own your first home.
So there’s my 12 home truths on buying a house. Overall take your time, do your research and don’t settle. Good luck and happy house hunting!
