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What to Consider When Buying Your First Home

David1 - Head (2) (2) David Boyd Dec 7, 2023, 10:05 AM
At Peter Anthony we’ve been dealing with first time buyers for decades so we’ve got all the knowledge to help support you through the crucial aspects to consider when buying your first home. From understanding the steps involved to managing costs and seeking assistance, this guide will help you make informed decisions that are right for you.

What to Consider When Buying Your First Home

Whatever your age, buying your first home is an exciting milestone that marks a significant chapter in your life. It's a dream for many, but the process can be daunting and complex sometimes. To make this journey smoother, at Peter Anthony we’ve been dealing with first time buyers for decades so we’ve got all the knowledge to help support you through the crucial aspects to consider when buying your first home. From understanding the steps involved to managing costs and seeking assistance, this guide will help you make informed decisions that are right for you.

The Decision to Buy Your First Home

Deciding to buy your first home is a major life decision that requires careful consideration. Before you leap into the process, ask yourself why you want to buy a home. Are you looking for a long-term investment, a stable living environment, or both? Consider your financial stability and whether you are ready for the responsibilities of homeownership.

How to Buy Your First Home

Understanding the process of buying a home is crucial to a successful purchase.

Here's a step-by-step guide to help you navigate the journey:

Assess Your Finances

Before exploring the housing market, evaluate your financial situation. Determine how much you can afford, factoring in your income, savings, and existing debts. This will give you a realistic budget for your first home - maybe even speak to friends and family who already own their home for some laid-back honest advice - they could even share a spreadsheet with their outgoings/costs associated to give you an overview of what to expect.

Get Pre-Approved for a Mortgage

Seek pre-approval for a mortgage to understand the amount you qualify for. This will also demonstrate to sellers that you are a serious buyer.

Not sure where to start? Book a mortgage appointment with our experts! We have teamed up with Independent Mortgage Advisors– to find the right mortgage deal for you without charging you a fee. Our experts are comparing 1,000’s of mortgage deals from across the market and are available seven days a week to provide advice without obligation.

Define Your Needs and Wants

Make a list of your priorities in a home. Consider factors such as location, size, number of bedrooms, and amenities. This will help narrow down your options.

Hire an Estate Agent

Engage the services of a qualified estate agent who specialises in working with first-time buyers. We can guide you through the process, provide valuable insights, and negotiate on your behalf.

House Hunting

Begin the exciting journey of exploring potential homes. Attend open houses, schedule private showings, and compare different properties. Keep your budget and priorities in mind during this process.

Looking for some inspiration? Check out our houses for sale!

Make an Offer

When you find the perfect home, work with your estate agent to make a competitive yet reasonable offer. As a first time buyer, negotiation can be tough, at Peter Anthony we can provide guidance on the negotiation process.

Home Inspection

Once your offer is accepted, schedule a home inspection to identify any potential issues. This step is crucial for making the right decision and negotiating repairs if needed. Failing to do this could lead to a very costly mistake!

Secure Financing

Finalise your mortgage details, ensuring that all necessary documents are in order. Work closely with your lender to complete this critical step. Don’t worry if this seems a lot, you’ll be talked through the process during your mortgage appointment!

Closing Process

The closing process involves signing the final paperwork, transferring funds, and officially taking ownership of the property. Again, your estate agent and solicitor will guide you through this process.

Costs of Buying Your First Home

Costs of Buying Your First Home

Understanding the costs associated with buying a home is essential to avoid financial surprises.

Here's a breakdown of the key expenses:

1/ Down Payment

The down payment is a percentage of the home's purchase price that you pay upfront. It typically ranges from 5% to 20% of the home's value but in most cases is at least 10%.

2/ Closing Costs

Closing costs include various fees, such as legal fees, appraisal fees, and insurance. These costs typically amount to 2% to 5% of the home's purchase price.

3/ Home Inspection Costs

While not a requirement, a home inspection is highly recommended and comes with its own cost. Plan for this expense in your budget.

4/ Property Taxes and Insurance

Factor in property taxes and homeowners insurance, which are recurring legal costs associated with homeownership.

Tips for Buying Your First Home

Navigating the market as a first-time buyer can be overwhelming, but these tips can help you in your search:

1/ Research the Market

Stay informed about the property market in your desired town or city. Understand trends, property values, and potential growth.

2/ Be Realistic About Your Budget

While it's tempting to stretch your budget for a dream home, it's crucial to remain realistic. Avoid overextending yourself financially to ensure a comfortable homeownership experience.

3/ Consider Future Resale Value

Even if you plan to stay in your first home for a long time, consider its resale value. Opt for a property that is likely to appreciate over time. Are there any home improvements you could complete, for example.

4/ Explore Financing Options

Research various mortgage options and interest rates. Consider consulting with a financial advisor to find the best financing solution for your situation.

5/ Plan for the Future

Anticipate changes in your life, such as career advancements or starting a family. Choose a home that can accommodate your needs now and as you progress to further milestones; if that is what you plan for.

Help to Buy Your First Home

As a first-time buyer, you may be eligible for various assistance programs designed to make homeownership more accessible.

Explore the following options:

  • First-Time Homebuyer Programs

The government offers first homes scheme discounts specifically for first-time buyers, providing financial assistance or favourable loan terms.

  • Down Payment Assistance

Some programs offer help with the down payment, making it easier for you to enter the housing market.

  • Grants and Subsidies

Look into grants and subsidies that can help reduce the overall cost of purchasing your first home.

  • Tax Credits

Investigate whether you qualify for any tax credits related to homeownership. These credits can provide additional financial relief.

Buying your first home is a significant achievement, and with careful planning and research, you can make the process smoother and more rewarding. Remember to prioritise your financial well-being, thoroughly understand the costs involved, and seek assistance through available programs. By following the steps outlined in this guide and staying informed, you'll be well on your way to turning the dream of homeownership into a reality. Thinking of buying a home? Get happy house hunting in trusted hands, here at Peter Anthony!

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