Discover how to get on the property ladder as a first-time buyer
Without first-time buyers, there is barely any market movement.
First-time buyers are essential to the property market and yet in a recovering recession, how could anyone make the decision to the biggest financial commitments you can ever make. Good advice and informative tips are always essential.
Here is the latest tips from the experts on the web.
Consider getting a Homebuyer’s Report rather than a full survey. A basic survey is a requirement of the mortgage lender and will confirm the property is broadly worth what you have offered, often its claimed that it just a drive-by. A Homebuyer’s Report is more comprehensive and should highlight any areas of concern. Extra money spent on a more comprehensive survey is money well spent as the cost putting a structural defect right could cost a large sum.
It’s good to seek advice from a qualified market mortgage adviser to see whether it’s feasible for you to enter the market in its current climate. Avoid advisers that are tied to one product.
Before you start property hunting, you will need to know what spending power you have. This should be a realistic figure and at least agreed in principle with your mortgage lender. Estate agents will take you far more seriously as a first time buyer if you have a letter with an agreed mortgage amount that they are prepared to lend. Credit checks and detailed documentation will follow before any offer is accepted, so be prepared.
First time buyers should accept that their first house may be a house they are in for many years to come. Unless the market rises or their earning status changes dramatically the facts are you may be in the property for a good few years. So you will need to purchase with this in mind, in other words, can you live in the property?
One thing that has really made it hard for first time buyers are the lenders tightening their criteria, and as a result there is real pressure on borrowers to have larger deposits when applying for a mortgage. With this in mind, don’t over stretch yourself even though rates are currently low. There is a good reason why lenders are making it difficult to borrow. To some degree it’s there to protect you.
Its never an easy time in this climate as a first time buyer, but with a good understanding of the basic principles and with the ability to know where to turn to for good advice, you can discover that entering the property market isn’t impossible.