First Time Homeowner Advice
As a prospective first time homeowner buying your first home can be a very daunting experience – even if you’ve already found the property of your dreams, there are all kinds of pitfalls to avoid. Getting the right mortgage, for example from Leeds Building Society, ensuring the legal paperwork is carried out correctly and arranging for a surveyor’s report are just some of the things you need to consider, and often at a time when you’re trying to save as much money as you can.
First of all, you need to ensure you will be able to afford your property. Paying a mortgage is often considerably cheaper than renting, but it’s a much bigger financial commitment in the long term, so it’s worth spending as long as you need to ensure you pick the deal that’s right for you. Additionally, newly-built homes may be more affordable than older homes because some developers will offer deals, such as paying Stamp Duty or a proportion of the deposit on your behalf.
Types Of First Time Homeowner Mortgages
The main types of mortgage are fixed rate, variable and tracker, and they basically come down to whether or not you want your repayments to be tied to the current rate of interest. You can find out more by consulting a mortgage provider, but to put it simply: do you want to pay a set amount each month, or pay what may be a lower rate – with the proviso that it may rise without warning?
Other Costs Encountered By First Time Homeowner
As a new first time homeowner you will encounter a variety of one-off costs, most of which are unfortunately unavoidable! Land registry fees, estate agents’ fees, surveyors’ fees, legal and solicitors’ fees and Stamp Duty all need to be paid – and that’s before you even get to your removal costs. Your buying agent will usually try to make meeting all these needs as simple and painless as possible, but don’t shy away from asking questions if some costs seem excessive.
The survey is an important step in the house-buying process: it is designed to reveal any flaws, usually structural, and how much they will cost to put right. Although this can sometimes throw up some distressing results, you can use it as a way to negotiate a lower price with the seller as long as you haven’t signed the contract yet.
First Time Homeowner Legal Requirements
Once a binding contract has been agreed, your solicitor will prepare a disposition document which passes the ownership of the house to you, as well as making the financial arrangements for the agreed date of entry. Congratulations – as a first time homeowner you can now start decorating!