These first time buyer tips will be useful for anyone looking to make a home purchase.

Being a first time buyer and getting a foot on the property ladder can leave a lot of people confused. The process of buying a house isn’t something we are taught about at school or university. You need all the help you can get, whether through resources, Avondale real estate agents, or people who have previously bought a property.

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

1. You’re still living with your parent/s
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.

First Time Buyer Tips

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. When you rent you are very limited to making any changes to the property. Even down to changing the colour of the paint on the walls, that isn’t your choice and without permission from the landlord you are unable to make any changes.

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 in your journey to buying a property.

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. Maybe get a boost to your mortgage savings by putting your money into a government-funded  Help To Buy ISA. I don’t think these will be around forever, so take advantage an open one for your future.

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. Being first time home buyers should be a priority to save for your deposit.

Credit Rating

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. They might hike up the interest rate charges which means you could end up paying a lot more for the same mortgage value.

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.

Make sure you know your credit score before you even apply for a mortgage. A year to 6 months before you apply make sure you haven’t got anything negative affecting your credit worthiness. This gives you time to rectify or resolve a dispute. Unpaid debts or unpaid charges will impact your credit score.

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.

Even better get a mortgage broker to do it for you. They know the banks and markets and will source you the best option.

Use a mortgage affordability calculator to find out what you can comfortably afford. This will give you some idea of what to expect when making your mortgage application.

House Prices

Check out property websites and real-estate windows to get an idea of the latest house prices. Zoopla is a great place to see what property has previously sold for.

You can look up specific areas you would like to move to, it will give you a list of what’s available and what the selling price is for location.

Because of the hidden costs involved in buying, as well as your mortgage, you need to consider your budget. Monthly and long term so you know what your commitment will be.

Only look at properties that you know you will be able to afford. 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. Buying a house is such a big decision, you do need to have your thinking cap on to make a sensible decision. Being a first time home buyer you are not expected to know the in’s and out’s of the affordability scale.

Consider The Costs

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

There are all the others costs to consider, such as estate agent, surveyor, solicitor fees and stamp duty. You will have removal firms charges, building and contents insurance too buy as well.

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.

Save Money On Buying

You can save money by shopping around for a mortgage either yourself or through your broker.

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

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.

Use all the cashback and voucher reward sites there are to make any purchases online.

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.

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