When it comes to knowing what to look for in a first home, there are many elements to consider that may have not yet crossed your mind. And if you are yet to think of these things, how can you tell if you are ready for your first home? Here are a few considerations to bear in mind before you decide to find your first property.
Ready to settle down?
To buy a property, you must be able to provide a deposit, the ability to pay mortgage fees, solicitor fees, insurance premiums and maintenance costs, which means knowing what to look for in a first home can be difficult. As such, it doesn’t make sense to buy a property if it’s only for a short amount of time. Depending on the market, it can take 5-7 years to build up your equity. Therefore, it only makes sense if you intend to stay in the property for at least that period.
How are your finances?
Some buyers can afford to buy outright, but most people still require a mortgage. Before you can apply for a mortgage, it is important that you minimise your expenses and pay off any pre-existing debt. By doing this, you will create as much expendable income as you possibly can, which looks more appealing to the lender.
Lenders want to see that you have been with your employer for a while before they are willing to give you a mortgage. This means that you should either wait until you have been accepted for a mortgage before switching jobs or wait until you are settled in your new job before you apply.
How are your savings?
Homebuyers must be able to put down a deposit, which means you must have enough saved up to do this. And the bigger the deposit, the more mortgage options will be available to you. Lenders reserve the best rates for those with big deposits, allowing you to benefit from lower repayments.
And you don’t just need to save up for your mortgage. You will also need money for any home renovations you plan to make on the property as soon as you move in. And don’t forget any new furniture or appliances you may require!
A huge sign that you are ready to buy your first home is being aware of the potential bumps along the way. Becoming a homeowner isn’t an easy process, but the right estate agent can help. Get in touch with Joules Estate Agents today to see how we can help.