We see many first time buyers at this time of year and with the current financial climate in a period of huge uncertainty, we quickly thought we would share 7 top tips when looking for that all important first home. 1.Reality check Given the recent house price drops, some would suggest now is a great time to buy. It may well be true, but are you sure now is the right time for you to buy ? If you are buying with another person you must consider your relationship, can you really live together and all importantly are you happy entering into a financial commitment with this person. Many first time buyers rent initially to ensure they are in a good position to enter into this arrangement. Add to this that the whole purchasing process can be a gruelling one and can heavily eat into your personal time away from work, with stress to boot. 2.Budget, budget, budget Before you even look at houses or mortgages, work out your income and expenditure and ensure you include food, social spend, clothes etc. as it has to be realistic. Once you have an amount you can afford and you know what deposit you have available, go to see a recommended whole of market mortgage broker. They will be able to look across the market and can guide you through the amount of mortgage you can afford. They will also support you through the process and liaise with the lender on your behalf. You will also need to budget for utilities, home insurance and dependant upon your circumstances personal protection. Again they will include this as part of your budget and is crucial to you not over committing yourself. 3. Sometimes your parents do know best Parents will always want to be involved and it is great free advice. Typically they would have been through this process more than once and are usually all too aware of the pitfalls. They have seen the property market rise and crash and understand the important factors. Additionally if they are involved in the process they are more likely to help you move in, undertake DIY tasks and generally a good support throughout a tricky process. 4. You have the power As a first time buyer you will have no "chain" behind you and are therefore the most desirable type of purchaser. This is due to the fact that once you have your finance in place there are less issues that would result in you not being able to purchase the property. Also, you will not have specific time frames or demands on completion dates. Make sure you understand the vendor position and make your position clear. Ultimately it is still a buyers market and many vendors would potentially accept a reduced offer from a chain free purchaser. 5. Do not believe everything you are told Throughout this process you will find there are many interested parties and you need to work off your own agenda, not theirs. For example if an agent or vendor tells you there are many bids and interested parties in a property, it may not be the whole truth. Again in point 2 I state to see a recommended mortgage broker, to again ensure they get you the right product. The web is a great way to research any information given from moving costs to conveyance fees, just do not take anything at face value and verify all information as much as possible. 6. Associated, variable costs As part of your budgeting process and warranting an extra point here, you need to ensure all of the variable costs are budgeted for. From solicitors to stamp duty, from moving costs to your council tax and utilities when you move in, ensure it is budgeted. Also, your first property may collapse for all manner of reasons so be aware you may need to pay another valuation fee, or enhanced solicitors fee's should they have worked on the initial property. These costs can be increased if you are trying to purchase a repossessed property or a property at auction so really ensure you know your exposure to these costs. If you are unsure ask, there are many people you know including friends and family that will be able to give you some free, impartial advice. 7.Learn from it, enjoy it ! Ensure you do try and enjoy this adventure. Sit in the local pub of near any proposed home and speak with the locals, get a flavour of what it would be like to live there. Never put your heart and soul into one place as this is where you could let your heart rule your head. Get excited about the move, just try to remain practical. It is defined as one of life's greatest stresses, but managed and well planned it can be a dream move, into a dream home.
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