Buying your first property and leaping onto the property ladder is arguably one of the most exciting opportunities of adulthood and a truly momentous occasion which calls for celebration. Not only will you build your personal equity as you cut ties with rental agreements, but it provides you with a profound freedom to build a space for yourself, and perhaps your family too. Assisting clients with their first homeownership experience is something that excites us here at Own Homes and we wish to be with you every step of the way in your decision.
Below we have highlighted five tips to consider, please get in contact with us today if you have any questions.
- Before commencing the search for your dream property, it is essential to investigate your finances and the maximum mortgage which you could borrow. It is worth exploring different government schemes which are specifically designed for first time buyers such as the Help To Buy ISA, Shared Ownership and Equity Loan. It could also be useful to contact a mortgage broker and solicitor, to assist in wading through the legal jargon involved in first time purchases. Usually, it is possible to borrow up to four and a half times your salary and it is always advisable to submit a mortgage application as soon as possible.
- Once you have assessed your finances and come to a conclusion regarding how much you can borrow, you can apply for an Agreement in Principle document from a lender. This agreement will show estate agents and sellers that you have the paperwork in place from mortgage lenders, which allows you to buy a house. It is essential that you have the documents ready for your application such as bank statements, pension plans (where applicable) and payslips.
- Understanding stamp duty is necessary for first time buyers, as it is a legal requirement to pay stamp duty immediately upon purchase. The only exception to this rule is if the property sells for less than £300,000. Upon researching stamp duty, buyers will see there are different brackets for stamp duty, based on the value of the property.
- Once you have the documentation in place, it is time to contact an estate agent and commence your search. Estate agents are there to assist with finding your dream holiday, so do not be reserved when letting them know your requirements. If you arrange viewings there are a number of factors to consider, such as recent renovations and claim history, property age, council tax and utility bills. Creating a checklist for your viewings will help with narrowing your search.
- We would also advise to not be dismissive of a property which requires building work, as this could eventually reap many benefits and increase in value over time. Furthermore, it is more likely that clients will be in a position to negotiate a lower price for the property if it requires a renovation.
As an independent estate agent in Stevenage, we can make decisions quickly and tailor our property service to meet your specific requirements. Contact us today on 01438 367753 or via email@example.com.