First Time Buyers Guide

When thinking about purchasing your first home, it's important to ensure you complete some initial steps in readiness for future mortgage applications.

What does your credit report say about you? Ensure your credit report doesn't paint you in a bad light. Did you know you access a copy of your credit report to see what lenders can see about you, click here to find out how.

Once you've accessed your report you need to check the information on there is correct, here are some steps on how to improve your score:

• If there are errors, contact the providers to have them correct them.

• Check for any fraudulent information, if found report this promptly.

• Are you on the voters roll at your current address?

• Do you have a stable address history, moving home regularly can impact your score.

• Do you have high levels of debt utilisation, look to reduce before applying.

• Who are you financially linked to, if they have a poor score it could reduce yours, consider carefully before opening joint accounts with others.

• If you have CCJs or defaults, look to settle these accounts as soon as possible. There are lenders out there who will lend to you, but often not if the accounts haven't been settled.

• Pay your bills on time - late or missed payments will have a negative impact on your score.

Be realistic. When thinking about buying your first home, think carefully about how much you could afford to pay each month for not only your mortgage, but include the household bills and utilities which come hand in hand with home ownership. You will need to consider committed costs such as Council Tax, Home Insurance, Gas/Electric/Water, Repayments on existing debts/commitments, on top of any mortgage payment when thinking about how much you could afford to borrow. You will also need to consider discretionary expenditure like Clothing, Holidays, Memberships etc.

A mortgage broker can assist you with understanding how much you can lend and provide you with an agreement in principle.

Factor in your purchase costs carefully. There will be a number of costs to consider when purchasing a property, which you will need to factor into your savings plan such as:

• Broker fees - a fee paid to a broker for finding you a mortgage.

• Solicitor fees - the fee paid to the solicitor for completing the legal work around the purchase.

• Valuation fees - some lenders will require you to cover the cost of any valuation needed for the property.

• Building surveys - you may want to instruct an additional survey on the property for your own piece of mind, options of surveys are explained here.

• Mortgage fees - some products will attract fees such as Arrangement fees.

• Stamp duty - depending upon the value of the property you're purchasing there may be stamp duty land tax to pay.

• Moving fees - this could be as simple as hiring a van, or a more expensive removal company.

• Decoration / furniture costs*

*When moving into your new home you will naturally want to make it your own so decoration, furniture etc will need to be budgeted for. Remember even new build properties will need furnishings such as flooring, curtains/blinds etc.

Finding a house. It’s vital that you have an idea of what you want before you set your sights on a property or even begin looking. Sit down and make a list about what's important to you, such as having a downstairs toilet, having off-road parking or having 3 bedrooms, list what are dealbreakers for you. When you book property viewings, remember what you’re looking for and make notes of all the things you like and don’t like. Take pictures of what you don’t like and use the images to negotiate a better offer when you come to buy the property.

Experience. When viewing potential new homes, it's often useful to take an experienced individual with you, someone who has purchased properties in the past, or someone who has a specific trade/skill such as a builder / roofer etc. They may be able to point out any potential future costs you need to consider which otherwise you might miss. Always look to arrange a second viewing, this allows you to take time to reflect and go back with any additional questions etc.

Your offer is accepted what next? Once you've had an offer accepted, you need to liaise with your broker to finalise your application. You also need to instruct your solicitor to commence the legal work for you.