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Tips For First Time Home Buyers

Getting on the property ladder for the first time can be daunting for first-time homebuyers. With a process that might seem complicated from a distance, you may have dozens of questions when looking for your first home in Lanarkshire.

Don’t worry! In this article, we’ve broken down each step when purchasing a home as a first-time buyer and outlined our best tips to help make the process as simple as possible.

Costs of buying a house as a first time home buyer

Upfront costs as a first time home buyer

First time home buyers will have some costs to pay upfront, including:

Deposit as a first-time buyer

A deposit is required to put towards the total cost of purchasing a new home and is required when applying for a mortgage. The deposit amount can vary and will have an impact on the mortgage rates available to you, with the minimum deposit typically being 5% of the total value of the property.

Land and Buildings Transaction Tax (LBTT) aka Stamp Duty

80% of first-time homebuyers in Scotland will pay no stamp duty since there is a tax-free limit on properties bought by first-time buyers of £175,000.

Broker fees

Depending on which mortgage you opt for you may have fees to pay if you use a broker. A broker is an intermediary between you and the mortgage lender, such as a bank, who can offer advice on the different mortgages available and then broker an agreement between you and the mortgage lender.

Legal fees

Legal fees will be applicable as the process moves forward and you approach a solicitor.

Transfer fee

You may be required to pay a fee to cover your lender’s cost of transferring money for your mortgage to a solicitor.

Mortgage costs

Depending on your deposit amount and a host of other factors including your annual income, there are many mortgages out there for first-time home buyers.

Insurance

Mortgage lenders may need insurance on the property you are purchasing, with some lenders not being able to agree on lending if property insurance is not in place.

Getting a mortgage as a first time home buyer

Understanding mortgages can be the most difficult part of buying a home for the first time, but rest assured, it is not too complex when you have the correct information at your disposal.

When you have a deposit saved now you can begin searching for the ideal mortgage lender with favorable terms that best suit your requirements such as budget and duration.

You must establish all of the information required to make the best decision for yourself with the best possible mortgage agreement according to your needs.

To ensure you get the best deal possible you should discuss your mortgage with multiple lenders.

Searching for your first home

Once you have a mortgage agreement in principle you can begin searching for your first home!

Your mortgage agreement will help narrow your search to find the most suitable home according to your circumstances.

Here are a few properties that think would be perfect for first time home buyers:

Property on Laburnum Road, perfect for first time home buyers

Laburnum Road, Viewpark

Offers Over £95,000

Property on Wilkie Drive, perfect for first time home buyers

Wilkie Drive, Holytown

Offers Over £169,000

Viewing to see your potential first home

Be prepared

Have a look at the property whether it be online photos or drive-by. Think of anything important to you or any potential questions you may have beforehand. It can be easy for questions to slip your mind while viewing the property.

Request the home report

A home report can be requested free of charge from the seller, this gives you in-depth knowledge of the property such as the condition, energy report, property questionnaire, council tax band, and how much the property is valued.

Bring a friend

Whether it be a friend, partner, or estate agent you choose to bring with you, having someone by your side during the viewing process can make the process easier for you as a first-time homebuyer.

View both the inside and outside of the property

Buying a house can be one of the biggest purchases of your life, especially for a first-time homebuyer so it’s important to make sure you have a thorough look at the property, both inside and out.

Making an offer as a first time home buyer

Note your interest

If you decide the property is for you after seeing the home report and viewing, you can ask your solicitor to note interest. Once this has been done you will then be notified if a closing date has been arranged to make a final offer

Offer accepted

Your solicitor and the seller’s solicitor will then begin the conveyancing process until we have a concluded missive and you can look forward to getting your keys.

Your big move into your first home!

Pick your moving date

Picking your move-in date is dependant on the progress of your purchase and when that may be complete, as soon as this is complete you have free range on when you wish to move into your first home. Have any removal companies booked in for your desired date, pack all your essentials, inform everyone of your new address and enjoy your very first home.

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