What to Consider When Buying Your First Home
So, you’re thinking of buying your first home. No matter what age or stage of your life, it’s always going to be a daunting prospect with many ups and downs, as well as plenty of saving! To help make your journey as a first-time home buyer a lot smoother, we’ve put together a short list of tips.
Before you start even considering buying a property, you might need to start saving for the deposit, which will cover a percentage of the cost of the home. Having a significant savings fund can help to get a wider choice of mortgage options. To help you on your way, it might be advisable to try and cut out any discretionary spending that you feel is making a dent in your bank account and can help you get that dream home! For example, even cutting out small things like buying a coffee on your way to work can make a big difference over time. If you spend £2.95 on a coffee every weekday, this can add up to nearly £15 a week and over £750 across the whole year!
Draw up a Budget
It’s important to start by sitting down and ironing out some important questions. These may include your ideal price range and the maximum that you can currently afford based on your income and savings. Your budget must take into consideration the maintenance or repair costs that will be associated with the house, in addition the monthly mortgage payments. You’ll need to prioritise what you can’t live without, and what you’re willing to compromise on, as things may not go as expected!
Do Your Research
It is vital that you stay well informed during the buying process. If you are purchasing a home that has recently been built, this doesn’t necessarily mean that it won’t need to be checked thoroughly before purchase Looking at photos of a potential home can only tell you so much. Have a good idea of housing prices in the area and surrounding areas to help when it comes to negotiating the final asking price. Finally, before you sign the closing documents, make sure to do a final walk-through of your new home – you don’t want any unexpected surprises when you move in!
Questions to Consider
Don’t just rely on your estate agent or the internet to give you the simple answers to questions. It is important to squeeze as much information out as you can to help you make the best informed decision that you can. Some of the questions that may not initially spring to mind may include asking how long the current seller has lived there and if there has been any renovations done. It is also worth keeping in mind any potential issues that may arise in and around your new home; are there any issues with parking or have there been any previous disputes with neighbours? All of these may not seem crucial but they are worth asking, and can help you to settle into your new home seamlessly.
After you make a purchase on your first home, remember that there may still be work that has to be done before you can move in. Sometimes, home buyers might experience issues with boilers and heating systems, insufficient insulation, and plumbing problems. Leaks and electrical issues can do a lot of damage, so it is worth your while to get these potential issues sorted out – it will save you a lot more time and effort in the future!
It can be an emotional and stressful time when looking at homes for the first time, but don’t panic! The whole experience can seem drawn-out, especially if you receive a setback, but it is important to think of the bigger picture and remember that you need to find the right house for you. It is rare that you as a buyer will have your first offer for a home accepted, but stay positive, be patient and stay clam, you will eventually find the right home for you!
This guidance is for general information purposes only. Allianz accepts no responsibility or liability for any losses that may arise from any reliance upon the information contained in this guidance.
It can take a lot of courage to buy your first home.
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Information correct as of 15 March, 2019.
About the author:Market Management
Date:March 19th, 2019