How to Ensure Your First Home Purchase Goes Smoothly

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How to Ensure Your First Home Purchase Goes Smoothly

Are you preparing for your first home purchase?  Homeownership is a major investment of time, money, and energy, and without proper arrangements, it can drain your reserves.  Here is how to ensure your first go-round is a smooth and pleasant experience, rather than a stormy one.

First things first

Chances are you’re excited about finding a place to call your very own, but before you begin exploring properties, there are necessities to cover.  By securing financing in advance, you have a realistic shopping budget to frame your expectations. Little is more discouraging than thinking you found “the one,” only to realize it’s beyond your means.  With that in mind, total your monthly income and deduct your expenses to determine how much cash flow you have, then use a calculator to determine what you can likely borrow.

Small things add up

It’s important to remember incidentals as well as the bigger picture.  If you currently live in a flat, some expenses can take you by surprise.  For instance, as HomeAdvisor explains in their helpful guide, “First-time homebuyers should remember from renting that mats, towels, shower curtains, and waste baskets are necessities, but if the number of bathrooms in your new home is increasing, the amount of these items you need will increase as well.”

Another common surprise to first-time buyers is the need for an emergency fund.  A savings buffer can mean avoiding financial hiccups when an appliance must be replaced or when your roof is in need of repairs.  Even if you can only set aside a bit at a time, some padding is a must for financial security and peace of mind.

Weigh your options

When it comes time to explore mortgage options, UK buyers have choices those in the US do not, such as Shared Ownership and Help to Buy. Shared Ownership is an option for those who meet certain income limitations and are first-time buyers, or those who used to own a home and can no longer afford one.  Your credit should be in good standing, and rather than paying the traditional 20% down, a 5% down payment is typical.  In the case of Help to Buy, buyers pay 5% down as well, then the government pays the additional 15% towards the down payment to secure a mortgage loan.  Both the traditional mortgage and government loan must be repaid. You can estimate the amount of a traditional down payment using a rate calculator.

Help with the hunt

Once finances are in proper order, it’s time to narrow the search to the area you desire.  You can examine housing affordability in accordance with location with this handy tool from the BBC.  At this point, it’s time to connect with an estate agent and begin viewing properties.  Choose an estate agent carefully, and ensure you’re comfortable with their mode of service and level of communication.  For the best possible experience, you want someone you feel understands your needs and responds accordingly.

What’s on your list?

Put together search criteria to help you compare homes, and keep a checklist handy to ensure you don’t miss crucial details.  Determine your highest priorities, and sort out what features are desirable versus those which are undesirable.  Consider adding specialized home shopping apps to your smartphone for tracking information, as details tend to blend after just a few viewings.

Moving matters

As you choose a location, bear in mind the farther you move, the more challenging the transition could be, along with potentially higher moving costs.  As Fantastic Removals notes, the sooner you begin packing, the better, as it always seems to take longer than expected.  When moving day comes along, enlisting a few robust mates for a do-it-yourself move can lighten the burden, both literally and figuratively.

Your first home purchase can be both a thrilling prospect and a daunting one.  Establish financing in advance, sort your priorities, and ensure you have good help for the process.  With well-chosen arrangements and proper planning, you can look forward to a smooth transition.