Whether you’re a first time buyer, second time buyer, or forever home buyer, deciding on a home to buy is a big decision and getting it right is absolutely crucial.
Have you ever heard the saying ‘fail to prepare, prepare to fail?’.
Like it or not, it’s true, and it’s even more poignant when it comes to buying a house.
Before you even begin to look for a property there’s a lot to do, and a lot of things to sort out.
Firstly, you need to ensure you’ve got a decent deposit saved, then you need to ensure your earnings will allow you to borrow the amount you need.
If they don’t, you then need to decide whether you’re going to increase your deposit, increase your earnings, or reduce your budget.
Basically there’s A LOT to consider.
Hopefully, these tips will help you get everything you need in place so that you’re ready and prepared to buy your dream property.
1) Start saving for a deposit ASAP! Whether you’re years away or hoping to buy within the near future, saving up a substantial deposit is absolutely critical in being able to afford your dream home. There are some great ways you can do this, such as setting aside money each month, releasing equity in an existing property, or utilsing the government’s Lifetime ISA scheme.
The Lifetime ISA scheme adds 25% (up to £1,000) for every £1 you put in and can be a great way to build deposit funds faster than normal. It is important to note that there are numerous stipulations around this type of account, including a limit on the property price of £450,000, the requirement for it to be your first home, a need for the account to be open for 12 months before withdrawing the funds, along with other things. If you fail to meet the criteria in full then you may be required to pay an exit fee so do your own research and ask questions if you’re unsure on anything.
2) Speak to a qualified mortgage advisor at least 6 months before you plan to buy. Another reason why being prepared is so crucial is that a mortgage advisor can work with you to provide a mortgage in principle, along with tips on how you can get the best rates. Often, people decide to use a mortgage advisor at the last minute and although this can work, it’s always better to be working with one well in advance so you’re going in prepared.
3) Decide on a criteria for your new property. Whilst you may not be able to stick to it completely, having a clear indication of the type of property you want and the area in which you want it, is crucial. With a checklist to hand, you can pick out the properties that interest you easily and discard the ones you know won’t fit the bill!
The main point is, regardless of the timeframe in which you plan to make your purchase, you can never be too prepared and have too much knowledge.
If you’re planning on buying a new property, we’re here to help and offer expert advice.
Please get in touch to speak to our team, who will be delighted to help you.
