First Time Buyers
It can seem a very daunting task to get your foot on that first rung of the property ladder. The fact is that current house prices make it difficult for many would be buyers, and this is having an impact on the property market.
There are however a few things in your favour as a first time buyer:-
- There is plenty of property available and a shortage of buyers which can mean sellers are willing to negotiate on price
- Mortgage lenders are also offering good deals to attract first time buyers
- Interest rates are historically quite low, with a couple of recent cuts (early 2008) and the possibility that further cuts are on the way
- As you have nothing to sell, this may put you in a stronger position as you have no chain to hold up the process
The first thing you need to do is work out what you can really afford. Check with a few lenders or mortgage advisers how much they will let you borrow. This will be based on your income and expenditure and how much deposit you have available. Shop around for offers and deals, but make sure you get good advice and understand what you are getting into.
When you feel you have found the right mortgage lender, ask for a decision in principle letter or mortgage certificate to show what you have been offered. This will help when you are ready to place an offer on a property, as it shows that you are in a serious position to proceed.
Be sensible, and don't be tempted to take on too much financial commitment. Set a realistic budget and stick to it. Then have a good look round at property within your price range and start to arrange viewings. Visit a few properties to get a feel for what is available before you are tempted to put in an offer.
Finally, don't forget other costs such as legal fees, valuation fees, stamp duty and moving costs to name a few which will eat into your budget.
Good luck and happy house hunting!
