8 Things to Remember for First Time Home Buyers | Get Financial Freedom Tips | Transform Your Financial Future


Monday, November 10, 2014

8 Things to Remember for First Time Home Buyers

If you’re a first time home buyer, your head is probably swimming with all of the information available out there. To confuse you even more, but ultimately to help you, the following 8 considerations are important:

1) You Don’t Need to Get a Mortgage as Large as You’ve Been Approved For

A lot of mortgage lenders will approve you for a large mortgage. A mortgage that you probably can’t afford if you do the math. You don’t have to get a mortgage as large as this just because you’ve been approved for it. Make sure you can truly afford your mortgage and any other unexpected payments that might crop up before going ahead and sealing a deal.
First Time Home Buyers

2) You’ll Spend More Money Than You Think on Other Things

Although the mortgage is the thing everybody talks about, you’ll spend more money on other things. There’s stamp duty for a start, and all kinds of other fees that you need to fork out for. They all seem pointless, but you have to pay them if you want to go through with this.

3) A Large Cash Cushion is Always Helpful

Not only for the fees that you’ll need to pay, but just in case anything goes wrong too. Something may break just as you move in, and you’ll want cash to fix it. Make sure you haven’t spent every last penny. A big cash cushion looks better to mortgage providers too.

4) Your Situation May Change

Your situation could change in a number of ways over the years. You need to be prepared for what you’d do. Think of all of the possible situations and then think of a solution. What if you had to take a cut in your hours/pay? What if you lost your job? What if mortgage rates went up?

5) Your Credit Score is Very Important

Your credit score gives lenders and idea of how good you are with your money. You need to be able to prove that you can manage your finances effectively. Make sure you’ve got your credit score in great condition before you apply for a mortgage.

6) You Can’t Change The Location

You can change anything else about a property, but you can’t change the location. The location is important, as you’ll be looking at it outside of your window each day. I suggest visiting an area multiple times at different times of day before making a decision. Do neighbors keep their gardens clean? Are there any parties going on? Assess the location to make sure it’s right for you.

7) This House Should Suit Your Needs

What do you want from your first house? Consider the things that are important to you. A large semi detached home in South Woodford is perfect if you have a family. However, you might want to avoid a large home if you’re single, as the bills will be higher and you may struggle to maintain the property.

8) You’ll Be Responsible for Maintenance

Things break in the home all the time. If you’ve ever rented, you’ll be used to the landlord fixing this for you. Not anymore! Now it’s up to you to get these things fixed. The sooner you fix problems, the better.

Bear these 8 things in mind and you should have a pleasant transition from renter to buyer!

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