Here is a Helpful Guide.
1. Determine what type of home best suits you
You will be faced with many options when you begin the search for your first home, which can be daunting if you do not have a rough idea of what you are looking for ahead of time. Whether it is a large detached house in the country or a small single bedroom apartment in a city, you should research the pros and cons of each before you start your search. It may be that the home you initially thought suited you actually would be a burden on your life, and with such a huge purchase it is important that you come to realise this before you actually buy.
Similarly, you should decide ahead of time whether you will want to invest more time and money into a property after you buy it, or whether you want to buy it in a completed state where you can just move in straight away. Some people opt to purchase a home with a lower quality interior at a lower price, so they can fix it up themselves, whilst others want their home to be move in ready and are willing to pay more for this.
2. Decide on what features are important for you
It is not only important to determine what style, location, and quality of home you want, but is necessary to also reach a decision on the type of features that are ideal for you. Unless you are planning to re-do the house after purchase, the size of the kitchen, number of bedrooms, number of bathrooms, and appearance of the interior of the house should be a big concern for you. Additionally, outdoor features such as a garden, carpark or driveway, proximity to schools or other amenities, is something that may affect your quality of life. These things cannot be changed after the purchase, so it is vital that you decide ahead of time the features that are must-haves and the features that are only nice-to-haves.
3. Determine a budget and assess what you can really afford
As a general rule of thumb, you should look to set your budget at around two to three times your annual income so that you are not taking on a mortgage commitment greater than you can afford. A general mistake that first time buyers make is that they borrow too much so that repayments are too large to pay in comparison to what they can afford. Always ensure you are keeping aside funds after mortgage payments to support your lifestyle costs e.g. clothes, food and entertainment. Additionally, you should not only consider the home’s mortgage payments but also the total cost of the home, for example, council taxes, insurance and maintenance.
Assessing budgets for home purchase can often be overwhelming so gaining proper financial advice prior to your purchase can often be beneficial to buyers.
4. Figure out which mortgage product is right for you
After determining budgets and numbers it is time to start looking for a mortgage lender with a good reputation, and with products which meet your requirements.