Things to consider before buying your first home

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The number of first-time buyers is increasing and is at the highest figure since 2006, with a total of 365,000 people purchasing their first property in 2017.*

Are you thinking of purchasing your first property soon? To make sure you’re prepared, read our top tips below on the things you should consider before buying your first home.

1) Check your credit report before applying for a mortgage

When you apply for a mortgage, lenders will do several affordability checks to decide whether you will be able to make the repayments. As part of these checks, they will also check your credit report. It is important that your credit report does not have any errors because this can affect your chance of securing a mortgage.

It’s also worth bearing in mind that certain lenders may perform hard credit checks that leave a footprint on your credit profile, which could negatively affect your credit score.

2) Consider all costs

When purchasing a property, there are several different fees and costs you need to consider before you decide if you are ready to buy. These include; solicitor’s fees, survey costs, home insurance, any removal costs and any furnishing/ renovation costs on the property. Make sure you have budgeted enough money to cover everything.

3) Find out how much you are eligible to borrow

You may have a property in mind, but depending on your individual circumstances, you may not be able to take out a mortgage to cover it. Before setting your heart on a home, you should obtain a Decision in Principle (DIP) which will tell you how much you should be able to borrow.

4) Write your wish list

Once you know how much you can afford, you can start the fun part and write your wish list! A few things you might want to consider:

  • Do you want a property with outdoor space?
  • Do you need a garage or off-street parking?
  • Are you looking for a cosy family home or a modern apartment?
  • How close is the property to local shops?
  • Can you commute to work easily?

5) Decide which type of mortgage is best

There are hundreds of different mortgages on the market from a range of lenders. For example, there are fixed mortgages, which means your rate is fixed for a set period of usually 2, 5 or 10 years. As well as tracker mortgages, that are typically tracked against the Bank of England’s base rate. The best way to decide which mortgage is right for you is to use a mortgage broker. Our partner Cream Financial Solutions are fully qualified advisers can take you through the mortgage process step by step and discuss your options with you.

To find out more about mortgages, visit our mortgages page.

A quick note from us:

  • The above post does not constitute as financial advice and is intended to be informative.
  • Think carefully before securing other debts against your home.
  • Your home may be repossessed if you do not keep up repayments on your mortgage.

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