Buying a home for the first time: what you need to know
When you?re in the process of buying a home, it can become pretty stressful. You want to make sure that you?re making the right investment and that you?re investing your saved money in the best option. If you?re a first time buyer, circumstances become all the more exciting and gripping. In fact, many people who still don?t have a property often feel they need one right away. They feel that if they don?t step on the property ladder soon, it will become too late. If that sounds like you, don?t worry. By being aware of the basics of home ownership, you?ll maximise your chances of being able to overcome some of the pitfalls and take advantage of the best opportunities.
Learn about the market
Do you know what a fixed rate mortgage is? What about a standard variable rate? Those expressions are part of the terminology associated with the housing market. The more knowledge you have, the easier it?ll be to land the best deal.
Save a lot
The more you save, the easier you it will be to secure a mortgage. By having a bigger lump sum to present as a deposit, you?ll end up spending less with mortgage instalments and interest fees. And banks will be keener to win your business as you?ll be seen as less risky.
Consider the surrounding areas
You might be able to get a really good deal on a larger flat if you search for properties in developed locations. You may get a better price or get more property for the same price in comparison to areas that are highly sought after. But be careful in considering the resell value of the property you buy. A great deal for you might not look like a great deal to someone on the property market ten years from now.
There are some interesting home ownership schemes in the UK. Find out whether you qualify for any of them; you could save stacks of cash or get that dream property that is presently out of reach. For instance, you may be able to purchase a share of a house owned by a property developer. Other options allow you to buy on the open market, aiding you financially.
Think about a joint mortgage
Buying a home together with relatives or your partner might be the best solution. In addition to sharing the deposit, you can also divide up mortgage payments, council tax and maintenance costs. Keep in mind that you should still seek legal advice throughout the transaction. When drawing up the agreement, consider what will happen if one of you decides to give up their share in the property.