Planning to buy a first home can be as daunting as it is exciting for first-time buyers but there are a number of simple steps people can take to be 100% prepared and make the process run as smoothly as possible. With 2018 came the abolishment of stamp duty for first-time buyers, which has likely motivated aspiring homeowners to begin exploring how they can make their dream of owning their own home a reality. Check out these top tips to go from dream home to a real home this year.
1. Save save SAVE…
Saving for a deposit is undoubtedly one of the scariest and biggest hurdles anyone will have to overcome.
2. Research affordability hotspots
The property market around the UK is constantly changing, when buying a property, it is important to understand everything there is to know about the area you are hoping to settle. Try researching 3 potential areas to see which has the most stable market.
3. Get the most suitable mortgage to your circumstances
Take some time to really investigate the variety of mortgages that are available for first-time buyers. Some mortgage providers such as Virgin Money, have been developing innovative mortgages to help address challenges that first-time buyers in the current market.
4. Understand the credit score
Before getting a mortgage, you will be credit checked so now is the time to check your credit report and ensure all information is up to date and is accurate LINK TO CLEARSCORE. A slightly bad credit score can lead to mortgage lenders turning you away. It is the deciding factor in not only getting approved but also the rate of the mortgage you are offered. Now is the time to start paying any outstanding debt, be sure not to miss any payment agreements and all phone bills, utilities, and generic direct debits must be paid on time. Try to make more then the minimum repayment in 6 months prior to your mortgage application.
5. Do your calculations
Once your savings pot is up and running, consider using an affordability calculator to get an idea of how much you’ll be able to borrow based on your income and outgoings. This will give you a clear guide as to what you can really afford. Once on the property ladder it can only get easier…
6. Know what your spending
One of the first steps to feeling more in control of your finances is to monitor your spending – plan in advance and review all spending. There are many saving cards, which do this for you, the saving card of the year is Monzo; an application platform that tracks your every move.