How to Prepare to Buy Your First Home

Frankie at Planet Mortgages

14 February 2022
By Frankie

Have you decided that this is the year to buy your first home? Purchasing a property is a big and exciting milestone. But, before you get swept up in a house hunting whirlwind, it’s important that you’re as prepared as possible.

First time buyers celebrating moving in their new home
We understand that preparing to purchase a property can feel like a daunting and overwhelming process. From working out your budget and affordability to finding the perfect home, there’s a lot to take into consideration. Wondering how to prepare to buy your first home? Our team of mortgage experts have put together some top tips to help…

Start Saving a Deposit

If you’re planning on purchasing a property, it’s important that you start thinking about saving for a deposit. If you haven’t already, it’s a good idea to open up a savings account and regularly put a certain amount aside. Generally, mortgage lenders require a deposit of 10% of the value of the property you want to buy. In some cases, your lender may only require a 5% deposit. If you’re able to save more than this, you might find that putting down a larger deposit is helpful. A bigger deposit can allow you to access a wider range of mortgages and at lower interest rates. 

Research Into Home Buying Costs

It’s important to consider all of the costs that come with purchasing a property before committing to a sale. Aside from the more obvious costs like your deposit, you’ll need to think about legal fees, taxes, surveys and removal costs. As well as this, you should also think about what you’ll need once living in the property and the costs associated with being a homeowner. Some of these costs include monthly utility bills, mortgage repayments, furnishings, council tax and upkeep. 

Check Your Credit Score 

Your credit score is an important factor that lenders will often take into consideration when making a decision on whether to approve your mortgage application or not. If you have very little or no credit history, then it’s a good idea to start building this. Interested in learning about how to build your credit history? Check out our recent blog post on building a credit score. If you’re planning on applying for a mortgage but you’re worried about your credit score, then you should speak to a mortgage broker. An experienced mortgage broker will be able to advise you on the best route forward. In the meantime, check out our article on improving your credit score. 

Speak to a Mortgage Broker

Taking out a mortgage is a huge commitment and it’s important that you get the best deal for your individual needs and circumstances. Working with an experienced mortgage broker can help you to determine your affordability and eligibility. A mortgage broker can also help with securing a Mortgage in Principle which is also commonly referred to as an Agreement in Principle (AIP). In some cases, estate agents may require you to have an AIP before you see a property. 

Sign up with Estate Agents 

Signing up with local estate agents in the area that you wish to buy is a great way of ensuring that you’re alerted of any new properties. This could help you get ahead of other potential buyers and give you the opportunity to make an offer and secure a property. If you’re unsure of your criteria, it’s still a good idea to register with estate agencies to get an idea of what’s on the market. 

Looking for a mortgage broker in Colchester, Essex? Get in touch with a member of the Planet Mortgages team. Our team goes above and beyond to find out of this world mortgage deals. You can rest assured that we’ll be there to support you throughout your entire home buying journey.