There’s nothing more exciting than buying your first home. It’s often the dream for most of us, the reason we go to work and a huge factor in our money saving plans. At the same time, it’s also an incredibly overwhelming process, especially if it’s not something you’ve researched.
Although the process is, by and large, fairly typical across the board, there’s no doubt that everyone’s own circumstances are unique, which can play a huge part in how your journey looks.
With that in mind, we’ve pulled together a few things we wish we’d known when buying our first homes, and more importantly, the things you might not hear about during the process.
The process takes longer than you think
One of the most common things we see during the home buying process is how shocked people are at the length of time it takes to buy. While you might hear stories of people completing in several weeks, the truth is it’s usually a much longer process.
Obviously, this largely depends on several factors, many of which are usually out of your control. This can include construction time, the time it takes to arrange a mortgage, the process of pulling your application together or even the housing association you’re working with.
On average, buying a shared ownership property can take between one and three months, which is relatively fast thanks to the lack of a property chain, which often holds up the wider purchase.
On the other hand, buying outright can take up to five months, according to the UK Government website, while the UK average for conveyancing is currently between 12 and 16 weeks. Again, this can change if you’re part of a chain of buyers and sellers but highlights how shared ownership can help speed things up.
You could be eligible for several home ownership schemes
We get it. You’re excited to buy your home and instantly rush off to search dream locations. The problem is, without the proper research, you might be leaving money on the table.
The Government is increasingly looking to incentivise first-time buyers and there’s a huge array of home ownership schemes out there designed to get you on the property ladder.
Shared Ownership and Rent to Buy are the largest schemes and offer affordable routes into highly desirable areas, often reducing the amount of deposit necessary or even subsidising portions of your monthly payments.
The best thing you can do before you jump into your property search is look at the various affordable home ownership schemes available and see if any fit your needs.
You’ll need to save for more than just your deposit
When you begin the process of buying your home, everyone always highlights the deposit. It’s the largest outlay of the entire process and often the main hurdle to getting on the property ladder.
This means many people forget to factor in the additional cost of buying that occurs when you buy a house. While the various costs, and thus amounts, can vary depending on the type of property and the route you take to purchase, some common fees to consider include:
Reservation fee: Anywhere between £500 - £2,000.
Valuation fee: Anywhere from £150 - £600.
Property survey: Anywhere between £500 - £1,000 depending on the breadth of the survey.
Conveyancer / Mortgage Broker fees: Depending on the level of service, anywhere between £1,500 - £3,000
It’s always important to keep these fees in mind and in most cases, set aside a percentage of the property sale for additional costs. If you want to be safe, many experts recommend setting aside 7% - 10% of the property purchase price to cover these fees.
Stay on top of your budget, and get help!
It’s really easy to get ahead of yourself when you’re in the process of buying your home, which can often lead to financial challenges further down the line.
Before you get started, speak with an independent mortgage advisor or financial expert. They’ll not only be able to explain the various costs associated with the purchase but help you set a budget based on your income, savings, repayments and current outgoings.
At the same time, a mortgage advisor will help you not only find the right mortgage deals for you but help you complete the mortgage application, saving you both time and a potential headache.
Instruct a conveyancer straight away
One of the best things you can do when you think about buying a property is start instructing your legal professionals. Find and instruct your conveyancer before you even consider searching for your dream home. This gives you the maximum possible time to get the ball rolling and ensures key checks, such as proof of address, proof of identity and financial checks are out of the way.
That said, don’t just jump in with the first person you speak to, take the time to research potential partners. Take a look at their past performance, research their business and read through reviews.
Spend some time in your chosen area
When you finally start visiting potential properties in the area, spend some time there. While it might look great for 10 minutes in the sun, you don’t know what it’s like at night or during busier periods.
It’s always a good idea to take a walk or a drive around the local area and check out where the nearest amenities are. If you’re a commuter, for example, why not trial the walk to the nearest train station.
At the same time, research what’s going on in the area over the long term. You might find that investment is being poured into the area, which will only benefit house prices going forward.
If you’re in the market for your first home and you’re not sure where to start, shared ownership might be for you. We have a huge range of information around the scheme on our Shared Ownership hub, as well as a broad range of eligible shared ownership properties in some of the UK’s most desirable areas.
