Property ladder Dack

How can first-time buyers get on the property ladder faster?


Are you considering getting on the property ladder this year?

It is often a daunting task, but interest rates are at an all-time low with lenders offering a number of products to assist first time buyers, some with deposits as low as 5%! As a local Estate Agent we have put together a list of the top 5 things to consider should you be looking to buy your first property.

1.Do your research on how much you can borrow based on your current salary.

Lenders have different criteria on the level of borrowing, however most lenders will offer 4.5 times your annual income. Should you be jointly purchasing your property this will be the total income from both of you. I would advise meeting with a mortgage broker to discuss your options. We work closely with Moneysprite Solent who can discuss your needs over the phone, at your home or in our office. Contact us if you would like to arrange a free, no obligation appointment.

2. Know how much of a deposit you need.

As a rule of thumb the higher the deposit the lower the interest rate, however there are a number of products that our financial adviser will be able to discuss with you. There are some products that can offer a 5% deposit, however 10% is more common.

3. Understand the total cost of buying.

Unfortunately you need more than just the deposit. Other costs to consider are your legal fees, surveyor, stamp duty, general moving expenses along with obtaining the recommended and sometimes necessary insurances. All of these costs can add up!

We work closely with a number of local independent solicitors and can arrange a free quote to handle the conveyancing. In our experience a good solicitor is integral to a smooth home purchase.

4. Work out the time frame. Buying a property often takes longer than people imagine.

The average completion time we expect is between 10-12 weeks. However buying a property is not always a straight forward process and with a number of variable factors in the equation is it the job of your agent to manage the process and be positive yet realistic, clear and open in relation to your expectations from day one.

5. Don’t rush!

Buying a property is a big decision and not something to rush into. Understand everything in the equation and have all documentation arranged before you submit your offer. Most importantly your Agreement In Principle (AIP) for your mortgage. Most AIP’s are valid for up to 90 days.

Be prepared

An aspect of our role of the estate agent is to validate all offers received on behalf of our sellers. Should two offers be received, both from first time buyers, however one had their AIP from their lenders and details of their chosen solicitor, the other pending, it would be in our sellers’ interest to proceed with the more prepared buyer.

Our advice for a first-time buyer?

Think like an estate agent and do your homework! It is essential that your first step is the right one. So you need to make sure that you buy your home for the right price and in an area you will be happy in for the foreseeable future. If you research the market accurately by using Rightmove, OnTheMarket and Zoopla this will give you a head start when making a sensible offer on a property, as well as managing your expectations regarding your affordability.

View our properties for sale and please get in contact if you would like to arrange a viewing. Alternatively you can register your details to be kept informed of new properties as they come to the market.

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