If you’ve been thinking about joining the property ladder this is great news. Buying your own home and investing in bricks and mortar is a sound decision for your long-term future. However, navigating the house buying process as a first-time buyer can be a long and confusing journey. But we are here to help!
While the house buying process as a first-time buyer may feel daunting, help is at hand. In this blog post we have put together some of the basic steps you need to understand and to help you on your journey.
- Your Financial Position
Buying a home is a big financial investment. For many people, it’s the biggest investment they will ever make. You need to ensure you have sufficient finances to purchase a new home. Unless you have large savings accrued over your lifetime or you have had a large windfall, you’ll need a sizeable loan to buy your new home. To get an offer of a loan you will need to have a deposit that is a proportion of the property value. You will also need to keep money aside to cover the costs of your solicitor’s bill, stamp duty, valuations, survey costs, removal fees and more.
- Saving Your Deposit
You need to think about how much you need to save. The simple answer is that you will need around 10% deposit as a minimum. However, many lenders aren’t offering mortgages with a 10% deposit in these current post-pandemic circumstances. That said, the higher the deposit you can save, the more likely you will be to get accepted for your mortgage. You will also get better rates on your mortgage if you have a higher deposit.
- Decision In Principle
It’s important to have a ‘decision in principle’ before you start looking for your dream home. This will give you a maximum price of the property that you can afford. It will also set up the monthly repayments, so you know what to expect. You will also get a Risk and Features Document. This basically sets out the risks and features of buying a home.
Once you have your decision in principle, you can start shopping for your dream home in Peterborough. We would recommend you have a free initial consultation meeting with our mortgage advisors. They can assess your financial situation with you, make recommendations and help you in being accepted for a mortgage. Then you’ll be able to get really exciting about buying your first home in Peterborough.
The house buying process as a first-time buyer can be scary, overwhelming and stressful. Here at Letters Group we will be by your side, helping you every step of the way. There is nothing to be worried about and any questions you have, just give us a call.