A step-by-step guide to buying your first home

From deposits to mortgages, to putting in an offer, buying your first home can be daunting. Taking your first step on the property ladder is going to be the biggest purchase of your life so far, so to help you we have created a step-by-step guide.

Your Deposit

It’s never too early to start saving for your deposit. You should aim to save 10% of the cost of the property. Some lenders do offer a 5% deposit, however, you will access the best deals with a 25% deposit.

To help boost your deposit look into getting a Help to Buy ISA, which is designed specifically for first-time buyers, the government will add 25% to your savings up to a maximum of £3,000.

There are also several government schemes that can help you onto the property ladder, including Help to Buy and Shared Ownership. Help to Buy is an equity loan where the government lends you up to 20% of the cost of a newly built home. You will then need a 5% cash deposit and a 75% mortgage. You will not be charged loan fees by the government for the first five years.

Alternatively, you could be eligible for Shared Ownership. You will need a combined household income of less than £80,000 to qualify and be a first-time buyer or in the process of selling your home.

Your Mortgage

Once your search is realistic, you should speak to a mortgage advisor. They will look at your income, debts and your deposit to make an assessment of how much you can borrow. Before meeting with a mortgage advisor there are a few things you can do to improve your chances of getting a mortgage. Sign up to a free credit score website to see where you stand and if you can make any changes to improve your credit. If you have any outstanding debt that can be cleared, do this as soon as possible.

Your mortgage advisor will need the following paperwork, including proof of your identity and address, proof of income, bank statements and proof of deposit.

Your Costs

Costs to bear in mind include stamp duty, surveys, conveyancing, solicitors and moving charges. We appreciate that you’ve been saving for your deposit but unfortunately these additional costs are unavoidable. By doing your research you can calculate rough costs to factor in when you come to search for a property.

Your Search

Now the fun begins! With your budget in place, you can search for properties in your preferred area making sure that you look above and below your price range in case something catches your eye. Our advice is to contact your local agent and tell them your criteria so they can help with your search as well as regularly looking on Rightmove and Zoopla.

When viewing a property, try to keep listening to both your heart and your head. You need to fall in love with a property but it also needs to be right for you. Ask as many questions as you can, including: how long the house has been on the market? What position is the vendor in? And what’s included in the sale?

Talking to your friends and family who are homeowners can also give you a better understanding of how to buy the right property.

Your Offer

When you’re ready to put in an offer via your estate agent you will need to provide proof that you can secure a mortgage. Remember, as a first-time buyer you are not part of a chain meaning you are in a strong position when it comes to making your offer.

For help and advice on buying your first home, speak with our experienced team. We also provide mortgage services with Asset Mortgage Solutions who are regulated by the Financial Conduct Authority

Are you a first-time buyer? We have properties for sale in Blackwood, Caerleon, Cwmbran, Newport and Pontypool. To arrange a viewing or to tell us what you’re looking for, call our team on 01633 870777.