How to buy your first home?

Buying a home, whether you are an experienced home buyer or if this is your first time, is a lengthy and often complex process to go through. No one lets you know how it is done until you do it. Should you be looking for a traditional house or a new one created by home builders in Northern California? There are so many options out there that it can be easy to get side-tracked and lost, so try this.

Well, if you have been overwhelmed by the entire process, here is a little advice on how to buy your home and where to look for help. 

Saving for a mortgage

When you are looking to buy a property, you will need to save for a deposit. This used to be around the 5% mark of the price of the property you want to buy. However, these days it is recommended that you should save between the 10-15% mark in order to have a good chance of securing a place at a reasonable price. The more you save the better it is for you as you will be able to apply for mortgage deals that have lower interest rates. If you are a first-time buyer, then you can look into getting an ISA that will entitle you to a supplement from the government.

Find how much you can borrow

The amount of money that your mortgage provider will lend you is dependent on numerous factors. This will include the size of your deposit but also how you earn your income, your credit score and if you are doing a solo or joint mortgage. Generally, bans will allow you to borrow around 4.5 times your annual salary however, this does depend on your job and the individual lender. One thing you do need to remember is that there are additional costs to buying a property and so you should not channel all of your funds into your mortgage.

Exploring the neighborhood, you want to live in

If you are moving somewhere that you haven’t lived before or even visited, then you should defiantly get information straight from the source. You could spend a couple of nights in the area. This will allow you to check out the vibe of the area and see what amenities are there. However, you should also look to investigate the local infrastructure plans, the schools in the area, the transport links and the jobs available. All of these will have an impact on whether you want to buy in that area.

Seek help

One of the easiest ways to make buying a home that little bit smoother is to seek out a mortgage advisor in the area you want to move to. They will be able to advise on where to look and help you find properties in your area. They can also take all of the hassles out of applying for a mortgage.

Buying a new home

This is an exciting time in your life, but it is also stressful. Take your time and come up with a long-term plan to help you navigate this tricky period in your life.