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Buying your first home starts long before you view a property or submit an offer.
Taking some time to prepare can help you understand what you can afford, what mortgage options may be available and what you’ll need once you begin the application process.
Getting organised early can also help avoid delays later on, giving you more confidence when you find a property you’d like to buy.
Work Out What You Can Afford
One of the first things to consider is your budget. The amount you can borrow isn’t based solely on your income.
Mortgage lenders will also look at your regular spending, existing credit commitments, your deposit and the property you’re planning to buy.
Understanding your budget before you start viewing homes can help narrow your search and reduce the risk of finding a property that’s outside your price range.
If you’re unsure where to begin, using a mortgage calculator or finding out how much you could borrow can provide a useful starting point.
Start Building Your Deposit
Your deposit is likely to be one of the biggest milestones on the journey to buying your first home. Although saving regularly is the most common approach, it isn’t the only option.
Some buyers receive financial help from family (such as with a gifted deposit), save through a Lifetime ISA, or take advantage of a mortgage scheme if they’re eligible.
The size of your deposit can influence the mortgage options available to you. For example, some lenders offer 95% mortgages, allowing eligible buyers to purchase with a smaller deposit.
Budget Beyond the Purchase Price
The property itself won’t be the only cost you’ll need to plan for.
Buying a home can also involve legal fees, surveys, removal costs and other expenses that arise during the purchase. Setting money aside for these costs can help prevent unexpected surprises once your offer has been accepted.
If you’re unsure what to budget for, it’s worth speaking with your solicitor before your purchase begins, as they’ll be able to explain the costs involved in the legal process.
Check Your Credit Report
Your credit history forms an important part of most mortgage applications.
Checking your credit report before applying gives you the opportunity to correct any mistakes, update outdated information and understand how lenders may view your application.
It’s also worth avoiding unnecessary credit applications if you’re planning to apply for a mortgage in the near future. If you’re unsure where to start, our guide on improving your credit score explains some of the steps that could help before you apply.
Have Your Documents Ready
Mortgage applications are usually much smoother when your paperwork is already organised.
Although requirements vary between lenders, you’ll often be asked for proof of income, identification, recent bank statements and evidence of your deposit.
Having these documents ready before you begin can help avoid delays once you’ve found a property and are ready to proceed.
Get an Agreement in Principle
An Agreement in Principle is often one of the final preparation steps before you begin viewing properties seriously.
Although it isn’t a formal mortgage offer, it provides an indication of how much a lender may be willing to lend based on the information available at the time.
Estate agents will often ask if you have an Agreement in Principle before progressing an offer, so arranging one in advance can help you move more quickly when you find the right property.
Think Carefully When Viewing Properties
It’s easy to focus on decoration, room sizes and location, though it’s equally important to consider how the property suits your longer-term plans.
Think about practical considerations such as commuting, parking, storage, energy efficiency and any work the property may need.
If you’re viewing a leasehold property, make sure you understand any service charges or other ongoing costs that could affect your monthly budget.
Once you’ve found a home you love, our guides on making an offer on a property and property surveys explain what typically happens next.
Be Ready When the Right Property Comes Along
Buying your first home can move quickly once your offer has been accepted.
Preparing in advance means you’ll already understand your budget, have your documents organised and know what the next steps involve.
Our mortgage advisors help first time buyers every day, explaining the process, comparing mortgage options from a wide range of lenders and helping applications progress from the initial enquiry through to completion.
