3 Common Fears Of First Time Home Buyers

It is not surprising to harbour fears about a property purchase if you are a first-time home buyer. The uncertainties you feel might result from the buying process, especially when you don’t have all the necessary information. Indeed, doing anything for the first time may feel daunting, but how well-prepared you are can make things less stressful. A UK survey discovered that about 39,000 Google searches were primarily based on houses listed for sale, mostly by potential first-timers who wanted to check what they could afford. Are you considering buying a home for the first time? If you have some doubts, you’re not alone. Here are three common fears first-time home buyers face.

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  1. Affordability and mortgage rates

Whether you can afford a home may be a fear lingering in your mind. However, it’s quite normal to have such fears. Buying a house is a huge financial commitment, and it’s important to do some assessments to determine your financial capabilities. Often, it is advisable to choose a house within your budget. Settling on a house that costs less than your budget will allow for easy monthly mortgage payments. This way, you avoid situations such as having your house repossessed if you default on your monthly payments. 

Suppose you can afford a high-end home. In that case, you still need to prepare for a rainy day. For example, if you lost your job a few months or a year after purchase, you need a contingency plan to enable you to continue making your monthly mortgage payments. Mortgage rates can fluctuate and significantly impact the cost of your home. Therefore, consulting a mortgage broker from the beginning will be best.

  1. Neighbourhood safety

Many first-time home buyers are also concerned about the safety of the neighbourhoods in which they consider purchasing a home. You may worry about crime rates, proximity to schools, business centres, and other factors that affect your overall safety, comfort, and quality of life. This concern may be even more pressing if you’re considering starting a family or already have a young one. Every home buyer wants peace of mind in the location they choose to live. It might be a waste of money to buy property in an area with a high crime statistic. You can avoid such inconveniences by researching the area before making a financial commitment to the house. If it helps, you can visit the local police to do these vital checks.

  1. Home repairs and maintenance

Another common fear among first-time home buyers is the responsibility of maintaining and repairing the home. You may be worried about the cost of repairs, as well as concerns about what maintenance projects you can handle. If you have DIY experience, that may help quash any fears about buying a home for the first time. You can also research the best professionals you can consult in case you eventually need any help with maintenance or repairs, so you have an idea of their prices and requirements in advance. This way, you can prepare adequately. 

Indeed, all these fears listed above are understandable, but doing nothing about them could negatively impact your home-buying journey. So, in the meantime, how can you alleviate them? First, a good real estate agent can guide you through the process and offer helpful information about neighbourhoods, recommend lenders, or even mortgage products. Lastly, remember to set aside funds for future repairs and maintenance.

Signs That You’re Prepared To Buy Your Very First Home

Being ready and able to buy your very first home is a huge milestone in life. It takes a lot of hard work, dedication, and responsibility to be able to afford even the deposit for a house. Paying off your mortgage is usually a long-term commitment that will take up a lot of your life. As such, it can be an extremely daunting process.

So in this post, we’ll be explaining a couple of signs that show you are certainly ready to buy your very first home.

Signs That You’re Prepared To Buy Your Very First Home - suburban street with terraced houses image
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You’ve paid off most of your debts

Your financial circumstances play a huge role in when and if you should buy your very first home. If you haven’t paid off most of your debts yet and aren’t on track to do so, then you should absolutely focus on getting your finances in order first.

You know that you have job security

Job security usually means that you won’t be made redundant or replaced in the foreseeable future. It can also mean having skills and experience that are heavily sought after in the industry, meaning it’s easy for you to find a job should you lose your current one due to circumstances that are outside of your control.

You’re already doing your research

If you’re already doing plenty of research into mortgages, finances, locations, and even schools for your children, then it’s a good sign that you’re prepared to take on a mortgage. You should also look into specialists such as a mortgage broker or even financial advisors that can help you get your books in order to see how much you can afford each month. This can be a long process, but it’s extremely informative and will help you make better decisions in the long run.

You have plenty of savings

A mortgage deposit can easily be anywhere from 5% to 20% of a home’s market value. This is a huge amount of money that most people don’t have lying around. Start saving money now and you’ll find it easier to stomach a big deposit.

Your credit score is looking great

A good credit score means good mortgage rates. Before considering to buy your very first home, check your credit score in advance of researching mortgages to see what you could be eligible for.

You know where you want to live

If you’ve done research on where you want to live then it’s a sign that you’re prepared to choose a location. A lot of people find it hard to pick somewhere to live, so it pays to do your research and make up your mind ahead of time.

You’re thinking about starting a family

If you’re starting a family then you probably want to move into a larger home with more space, especially if you want to have several children.

You’re content with your career

Mortgages require you to have long-term stability and this includes your career. Making frequent switches can result in periods of no or little income, so make sure you’re content with your career so that your financial situation is stable and predictable.

You’re ready to take on the future

Of all the factors to consider when buying a home, one must be prepared for the future. This means a life away from your current conveniences, friends, and family members. It can also mean a life with your new family, and it could even involve starting a new job in some cases. If the idea of change is daunting, then you may want to hold off moving home.

5 Tips To Make Your First Home a Little More Affordable

Your first home is probably one of the biggest expenses to save up for in your life. A typical mortgage deposit can be anywhere from 5% to 15% of the home’s full value which can easily be tens of thousands of pounds. It goes without saying that you should try to reduce the amount you pay for your first home to make it more affordable, and luckily there are a bunch of different ways to do this.

So here are a couple of tips to help make your first home a little more affordable.

5 Tips To Make Your First Home a Little More Affordable - aerial shot of London and the river Thames
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1. Be more selective about where you purchase a home

It’s a good idea to be a little more selective when purchasing your home. Some areas can be much cheaper than busy places like central London, and even homes on the outskirts of major cities can be extremely expensive due to being in prime locations with great amenities. So unless you really want to live in a specific part of the country, we suggest trying to be more flexible with your location.

2. Check your mortgage eligibility

If you’ve got a great credit score then you have a better chance of getting a nice big mortgage for your house. This means you can afford a larger home or one in a location that you consider to be a prime choice. You’ll want to work with a mortgage broker to help you scout out the best deals, but you can prepare by getting a credit check with one of the major companies such as Experian, Equifax, or TransUnion.

3. Consider first home schemes

The government actually offers a First Home scheme for first-time buyers. With this scheme, you could get up to a 50% discount on the market value of your home. However, there are a couple of conditions that need to be met before you can claim this. For starters, the home must be a new one built by a developer or it must have been bought with a First Home discount in the past. You must also be eligible for a mortgage and your income must be below a certain threshold.

4. What about renovating a run-down property?

You can actually save a lot of money by using less conventional methods to get a home. For instance, you could consider renovating a run-down property. Buying this kind of property is fairly cheap, but the costs of renovating it can add up if you’re not careful. This requires DIY knowledge if you want to keep the costs low, but it can work with contractors too if you’re smart about your expenses.

5. Ask how much home you really need

There are many questions to ask before buying a home and you should always re-evaluate your needs and preferences to make this a bit easier. For instance, do you really need guest bedrooms? Do you really need a large garden? Does it have to be detached? Consider these questions and you might find yourself saving a lot of money.

Things to Think About Before You Move

Moving house may be a costly and stressful experience; it’s something we all go through, but it shouldn’t be done on the spur of the moment. There are numerous factors to ponder and consider before taking the plunge, including the obvious such as saving money where possible. Some really crucial things may not even cross your mind, yet they may become an issue later. Your home is your safe haven, where you may create memories and make them your own. You want to be sure it meets all of your short and long-term requirements.

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One of the first questions you should ask yourself is if you can afford the house. When looking for a home, you will most likely have certain expectations and items on your wishlist, but the perfect home will rarely exist, and even if one does, it may be out of your price range. When moving, especially if it’s your first home, you’ll want to be sure you can afford it because owning a home is expensive, and you won’t always know how much you’ll be spending. You can look at average bill costs in the area, but they are likely to fluctuate, and they won’t include items like meals, luxury, and other personal expenses. If you spread yourself too thin, you won’t be able to cope when costs rise, which they usually do, or if you have an emergency that requires a lump sum payment. Mortgages are a big thing and no matter how much you earn you may still need to get one, whether that’s a small one or a million pound mortgage. They can help you get to the home of your dreams. 

If you have a family, you should consider how long you plan to stay and what the local schools are like. Some people will move just to be in a better school catchment area, so if you consider this ahead of time, you will avoid any complications when they are ready to attend school. However, if you have young children, you should consider nurseries and childcare, as well as the fact that schools can change. A change in headteachers and the types of students in a school can drastically alter its quality. So, while you can never be certain, you may make an educated guess and do what you want at the time. 

There are crucial things to consider before moving house, such as what you want around you. Are you a city dweller who enjoys being surrounded by the hustle and bustle of everyday life and has a 24-hour shop around the corner? You could want to live a quiet and serene life surrounded by nature and the countryside. If you prefer a more natural environment in your new house, consider moving to a different place. This is the ideal lifestyle for young families and adventurous couples. Relocate to an area where you can afford to buy a home without a burdensome mortgage that leaves you with nothing. Live the life you’ve always wanted in the country.

What To Think About When Buying A Property Overseas 

The process of purchasing any property can be a difficult, convoluted one, and that’s when you’re going to buy something in your own country. When you’re buying a property overseas, whether it’s because you want to live there or you’re expecting to rent the home or apartment out to vacationers, it might seem even more of a chore. It doesn’t have to, however, and if you can make sure you have thought things out well before agreeing to sign anything, you should be able to see your way to the finish. Read on to find out more about precisely what you should be thinking about when you purchase a property overseas.

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Why Are You Buying?

Before you do anything, you need to figure out why you want to purchase a home in a foreign country in the first place. Buying a home for your own use versus renting it out to make additional money is a critical difference, with pros and cons for each.

To choose a home that best matches your needs, you must first determine why you want to buy in the first place. Vacation homes may have to be bigger, include additional features like a pool, or be located in a more convenient location near local businesses and activities. When you’re shopping for yourself, these considerations may not be as relevant, and you’ll be more concerned with your own comfort. In addition, because you won’t be renting out the house, the price will be a more important factor because you won’t be generating an income from the property itself. 

Consider The Location Carefully 

It’s possible you’ve already decided on a country, but have you decided on a particular spot within that country? For this, you’ll need to do a great deal of investigation. Choosing a location that attracts visitors is essential if you want to rent out your property. If you plan on living in the home, you may want to avoid the tourist regions in order to get some peace and quiet.

Getting in touch with a local real estate professional is one of the best options you have. You should consult experts in the country where you’ve decided to buy a home if you’re looking for an area with a rich history and a thriving tourism industry. What matters most is finding people who are knowledgeable about the property market and can help you make a wise investment decision.

Do You Need A Mortgage?

When buying a property overseas or in your own country, paying cash means you don’t need a mortgage at all, although you may still need bridging finance. However, this isn’t an option for most people, and therefore they will need a mortgage.

Due to the fluctuating currency rate, it is the mortgage that might pose problems when purchasing a home overseas, regardless of how much money you have saved up for the down payment. You could believe you’ve borrowed enough money to buy something in a foreign country, but the volatility in the currency rate means you may not have. This might cause problems and potentially mean the transaction has to be canceled. It’s impossible to know when currency fluctuations will occur, so make sure you have everything in writing so your money is protected.