Financial Tips For First Time Home Buyers

a plain image of a small house with a key opening the door

(image source pixabay)

If you’re not living in your own home yet, that probably means one of two things

  1. You’re still living with your parents.
  2. You are living in rented property.

While there is nothing wrong with either of these things, there are certain issues you need to consider

Your parents might cook your meals and do your laundry, but you may still feel inhibited in your life when you are living under their roof

And while renting may be the best option for you at the moment, you won’t fully be able to call the place you live ‘your home’ as there will be restrictions

If you want more freedom and stability in your life, buying a home could be considered a necessity.

To help you, here are some financial tips we think you will find useful

Start saving your money

To get a mortgage, you need to put down at least 5% as a downpayment; otherwise, the bank will refuse your application

If you ever considered saving money as an afterthought, now is the time to make it a necessity. Set up a savings account at a bank that offers you the best interest rate, or get a boost to your mortgage savings by putting your money into a government-funded  Help To Buy ISA

Look for ways to make savings in your daily life too, and stop spending any spare cash you have on anything you don’t need.

Show the bank you’re responsible

When applying for a mortgage, the bank will want to know that you are responsible

If they perceive you as a risk, they may turn your application for a mortgage down, or they might hike up the fees

Therefore, make it your priority to pay off any debts you currently owe and take steps to improve your credit score. The bank should then offer you a better mortgage deal

Shop around for a mortgage

While you are at the mercy of the bank when it comes to getting a mortgage in the first place, you don’t need to take up the first offer you receive

Shop around the banks in your area, factoring in all the fees and charges that are part and parcel of the mortgage deal

As with many types of loan, these hidden costs mean the process of choosing isn’t straightforward

Speak to bank advisors, ask them to lay out every cost involved, and then use a mortgage affordability calculator to find out what you can comfortably avoid.

Check out house prices

Check out property websites and real-estate windows to get an idea of the latest house prices

Because of the hidden costs (which we will come to in a moment), as well as your mortgage, you need to consider your budget

Only look at properties that you know you will be able to afford, and curb the temptation to look at any houses that you know are beyond your means

It can be easy to let your heart rule your head when choosing where to live, but because of the huge expense of buying a house, you do need to have your thinking cap on to make a sensible decision.

Factor in expected and unexpected costs

You may have the money for a deposit, and you might have seen a house that reflects your budget

But there are all the others costs to consider, such as estate agent, surveyor, and solicitor fees

You have taxes to consider, removal firms prices, and building and contents insurance

There is the cost of furniture and appliances to think about too, as well as all the usual expenses that come with running a home

There is a lot to consider, but it’s in your best interest to sit down and weigh up all the costs before choosing a property.

Look for ways to save money on house costs

You can save money by shopping around for a mortgage

You can also save money on furniture and appliances, by using second-hand stores both online and on the high street

By using price comparison services, you can save money on insurance and utility costs. And you can save money on removal services, by asking friends and family to help you with the move

There are all kinds of ways you can save money, so while there will be a hit to your bank balance, you can still be money-savvy when you are considering the expenses involved

Put money aside

Financial Tips For First Time Home Buyers

When calculating costs, don’t let every penny you earn dictate your decisions

You still need to put money aside for any emergencies that may arise, such as a big bill or any repair costs that come with the house

Therefore, factor in an emergency fund when you’re working out what you can afford; otherwise, you may be forced into securing extra credit to help you get out of a jam, and that will only add to your financial stress in the long term.

Get professional advice

Navigating the house buying process is difficult, particularly because of the many expenses that will befall you

It can be easy to become overwhelmed, so finding help where you can is critical

An account or a financial advisor will be able to help you budget and manage your finances

A good estate agent will help you find a good deal on a house and will give you an idea of the best time to buy in the property market. And an architect will give you advice on the viability of a property and will point you to any danger signs that may result in added expenses later on

Of course, you might also speak to experienced family and friends as well, be that for financial or practical matters when you’re navigating the house buying maze


Buying a house is both stressful and expensive, especially when you’re making the first step onto the property ladder

However, despite the personal and financial costs involved, it is worth making the move, as a house is a worthwhile investment

Follow our tips, seek advice from the professionals, and if you are planning on buying your first house soon, we wish you the very best of luck

*this is a collaborative post

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  1. A S,Edinburgh
    25/10/2018 / 13:29

    Very good, helpful advice, thank you. It can feel overwhelming, but some of the things you can do to prepare can be done over quite some time, and once you’ve got started on them, I think that helps it seem a little less daunting.

  2. Jean Cassell
    30/10/2018 / 13:20

    I think that young people these days need hearts like lions when embarking on home ownership. Many years ago our first home cost £6000. It seamed an enormous amount then and at times over the the years it was a struggle, particularly when interest rates rose to 17.5%. We have now been mortgage free for a long time and the benefits are wonderful.

  3. Amy simpson
    01/11/2018 / 07:45

    Great tips xx

  4. Chloe
    15/12/2018 / 18:02

    Really great information

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