How to Buy a House: First Time Buyer Guide
Owning your own home is a dream for many. Yet, it takes significant planning and responsibility to actually land into homeownership and make your dreams come true. From pinching pennies all the way to finding a removal company in Peterborough, there is a lot to consider when buying a home for the first time.
At Reads Removals, we have helped thousands of people move homes throughout the UK and we pride ourselves on delivering a stress-free move to each and every one of our customers. Read on to learn about the steps that can lead you to homeownership.
Before buying steps
While the logical thing you want to do is decide you are ready to be a homeowner and just like that it happens. Yet, before you even begin looking for a house, there are some important steps to follow.
1. Think about costs
Give your budget a careful analysis. Be realistic about how much you can put together towards a deposit. Also, don’t forget that there are often hidden costs when buying a home. Once you’ve moved in, you will want to decorate and buy furniture so it’s important to work out how much you can afford.
2. Save for a deposit
Now that you have established a budget, you need to find out how much you can borrow and start saving for your deposit. Remember, the more money you put down as a downpayment, the better mortgage rates you will be offered and your monthly mortgage payments will be lower too.
You’ll usually need to build up a deposit of at least 10% of the cost of the property you want to buy (although some lenders do offer 5% deposit deals to help you get on the property ladder sooner).
3. Apply for a Mortgage Agreement in Principle
An ‘agreement in principle’ is a statement from a lender to say that, ‘in principle’, they would lend you a certain amount towards a property. This will show sellers and their estate agent that you are serious about buying and can afford to buy a house, as you already have a pre-approval in place.
Now that you have an idea of what you can afford, it’s time to start thinking about finding the perfect home for you.
4. Start your search
The first step is to really think about where you want to live. What do you look for in a city, town, or even a neighbourhood? Do you want to be able to walk everywhere, be close to your family or work? You will also need to decide whether you want to buy a new build or an older property.
We recommend keeping an open mind and to be realistic about what you can get for your budget. It’s rare that you will find a house that has everything on your wishlist.
5. Make an offer
You have found and viewed a property you’re interested in, now it’s time to submit an offer to the estate agent and arrange a mortgage. The lender will need to make you a formal mortgage offer before you can exchange contracts.
6. Hire a conveyancer or solicitor
Your offer has been accepted! Once you have a purchase agreement, you need to hire a solicitor or conveyancer to take care of the legal work to transfer ownership of the house to you. You may also want a property survey to assess the condition of the building and if there are any structural problems.
7. Find a removal company in Peterborough
If you want to ensure everything on your moving day goes as smoothly as possible, you should consider hiring a removal company to help move your belongings from A to B. Whether it’s packing up your furniture and valuables or transporting them to your new place, our team of experts can help. Learn more about what our removals service includes.
8. Sort out your home insurance
Don’t forget to arrange for your insurance to begin from the exchange of contracts date. If you don’t have insurance, you won’t be covered for flooding, fire, vandalism, etc.
9. Exchange contracts
Once your mortgage has been approved, the contracts will be exchanged and you are now legally bound to the purchase. The changes of anything falling through now are extremely low.
10. Complete the sale & move in
On the day of completion, the money will be transferred to the seller and you can collect the keys and move into your dream home. Congratulations the property is now yours!
If you’d like to find out how Reads Removals can help provide a stress-free moving service, contact us today for a free quotation. We will be more than happy to help answer any questions you may have.