Are you a first-time buyer feeling completely lost on where to start? You're ready to start your journey to purchasing your first home or you want to know what you need to do to get there but are overwhelmed? You’re not alone. So many people in the same situation as you will put off buying a property because they don’t understand or even know the process at all.
So, we’ve put together a short guide to help you understand your situation better and feel confident in taking that next step.
What to do if
YOU HAVE YOUR DEPOSIT READY AND ARE ACTIVELY LOOKING TO BUY
YOU ARE STILL SAVING AND WILL BE LOOKING TO BUY SOON
Understand and get your finances in order
One of the most challenging tasks you’ll face during your journey is saving for your deposit. Most people will find that sacrifices must be made and depending on your living situation at the time it can be extremely difficult to put money aside every month, especially with the cost of living having drastically increased in recent times. The good news is that this is only temporary and once you are in your first home it will feel well worth all the hard work.
Many underestimate just how much cost comes with purchasing a house and the unexpected fees that come up along the way. Knowing your finances, what to expect and when can help make the process a lot smoother and less stressful for yourself. The costs to consider are;
The more of a deposit you have the better as you are likely to be offered lower mortgage rates and have less of a loan to pay off over the years. Most people aim for 10% or even 20% however this can take much longer.
The Welsh Government have initiatives available to first-time buyers such as the Help To Buy Scheme and Lifetime ISA. Not everyone is eligible for these but it’s certainly worth checking if you fall into either of the categories. Find more information on eligibility here.
Get a Mortgage Advisor
Seeking advice from a mortgage advisor in the early stages will be incredibly helpful for you to understand the financial aspect of a mortgage and your own personal situation too. Even if you feel like you are nowhere near ready to the offer stage, a mortgage advisor will be able to tell you what goals you need to set to qualify for a mortgage. You don’t want to find yourself in the frustrating situation where the perfect home comes on the market, you have your deposit ready but you can’t get a mortgage due to reasons you were unaware of and that could have been rectified in the months leading up to that moment.
There are many factors that could affect your application and the rates you are offered as a first-time buyer and you need to bear in mind that you need to be sensible with your finances for months if not years before buying a house. The checks that lenders make are intrusive and they will look at your spending habits closely. Here are a few examples to be aware of;
We highly recommend 75point3, a local company offering financial advice, with a personal service, which is comprehensive and professional and takes the stress out of the process. Find more information here.
Register yourself with local agents
Buyers tend to only get in touch with an agent when they have seen a property online or a “for sale” board outside of a property they are interested in. But registering your details with as many local agents right away can benefit you in many ways.
Even if you feel like the right property isn’t currently online for you, agents will store your details and preferences on their system and will keep you up to date on new listings that come to market that match your criteria. They’ll let you know of any price reductions on anything you’ve had your eye on but it didn’t quite fall into your price range previously, ensuring your always in the know and don’t miss your potential dream home.
Familiar yourself with the market
I’m sure we’ve all had a scroll through property listing sites when we’re not looking to purchase a property, we all like a bit of a nosey. But here’s why this is a good thing and why you should do this along with attending physical appointments more when you are ready or almost ready to make your first purchase.
WHAT TO DO ONCE YOU HAVE FOUND YOUR DREAM HOME
(NOTE: the process usually takes 12 weeks as a minimum, with many sales exceeding this due to delays with surveyors' diaries, searches, etc.)
ADVICE / TIPS FROM OUR SALES NEGOTIATORS
Purchasing a home for most of us is the biggest purchase we will make during our lifetime and will be an excited and proud moment. So, it must be done right and not rushed. Feeling confused or lost is completely normal and if you still feel like you have any questions our dedicated team are always on the other side of the phone to help you.
Bangor- 01248 35 35 44
Llangefni – 01248 72 33 22
Caernarfon – 01286 67 7774
Llandudno - 01492 88 44 84
Colwyn Bay – 01492 88 44 84