What Do First-Time Buyers Need To Know?

It’s an exciting time when you are a first-time buyer of a house. But it can feel intimidating too as there is often a lot more to learn than you may think. So what do first-time buyers need to know? Here’s a quick and easy guide to help make it a smoother all-round experience.

Beware Interest Rates

Interest rates are rising and falling all the time. Although recently, they have just risen again. Interest rates dictate how much you pay your bank after a loan. These can be fixed or variable and are set by your country’s national bank. For example, UK property investment interest rates are governed by the Bank of England. A fixed-rate doesn’t change and can save you money when rates rise. Yet, variable terms save you money when they fall in line with interest rates.

Shop around for the best mortgage deals.  Consider speaking to a mortgage broker.  It’s crucial you don’t overstretch what you can afford on your monthly repayments.

Understand the Various Costs

When you buy a property, there isn’t only the cost of the house itself you must pay. There are many other costs that can catch you off-guard as a first-time buyer. In the UK, as an example, in addition to the deposit (between 10% and 40%), you must pay stamp duty on a home worth over £300,000. This rate depends on the property value. There are also valuation fees, surveyor fees, and conveyancing (deed transfer) fees before you have even moved into your new home.

Don’t Rush the Search as a First Time Buyer

Know how to make decisions before making an offer on a home you want. But there are often hidden things that a seller may not tell you, and then there’s the location. Make sure you spend a lot of time researching homes you feel you like. It helps to make a shortlist and then research the area. Look for things like crime rates, any amenities nearby, and schools in the area if you have kids. And if you have any doubts, estate agents are obliged to answer questions honestly.

Make the Most of a Viewing

Most real estate sites are excellent and will offer many images and even videos of a property. But you can’t tell everything from a picture. You need to feel at home when you want to buy one. So always request a viewing. This gives you a chance to look for issues like mould and dampness and even check the plumbing. You can also see how a home really looks and feels so you can begin imagining how you will decorate to get a sense of any likely future costs.

Learn How to Make an Offer

The all-important offer is the worst part of buying a house. It can be tense because you don’t know what others are offering and whether it will be accepted. But first, really consider if you want the house. If you do, you are in a good position if it’s your first time because you don’t have to wait for your current home to sell, and you have your mortgage lined up. Also, ask your agent if the home has been listed for a long time, as a seller might be willing to accept a lower offer.

Summary

It’s easy for a potential first-time buyer to make a hurried and rash decision that you may later regret.  It’s better to do your homework and make considered decisions and not get swept along with the excitement of owning your first property.  Mistakes can be hard to rectify as well as expensive and you may end up in a home you’re not happy with.  So make sure you understand the full process and wait until you find a home that suits your needs and is within your budget.