The thought of owning your own home may seem like an impossible dream but making a commitment by getting your finances in order can make that dream a reality. To work towards making your first time buyer dream a reality, Olubukola Abiiba, Head of Leasehold Sales Services at Newlon Housing Trust, gives her advice to follow these basic principles to make the process as simple as possible
Organise your finances
It is essential for every first time buyer to get their finances in order as most would need to secure a mortgage.
A mortgage is a long-term commitment, so it is important that you start sorting out your finances as soon as possible to make sure you are ready for when you want to apply for a mortgage. Check your credit history using one of the credible credit reference agencies and work on improving it if your score is low.
Affordability
Decide how much you can afford and if you are relying on the Bank of Mum and Dad, it is good to start the conversation about how much they can contribute to assist you. Check how much you have in savings and how much you can borrow from a mortgage lender. I would recommend that you shop around to find the best deal suitable to your financial needs and take time to carefully look at the details before signing any paperwork. You can speak to a mortgage adviser to help you secure the best mortgage rates and deals. Remember, your home may be repossessed if you don’t keep up with your mortgage repayments.
Find the Right Property
Buying a property may be the most important decision you make in your life, and it can be quite overwhelming when you start to search for your dream home. Finding the right property can be an exercise in itself, so I would recommend that you focus on viewing properties that are within your affordability range and suitable to your needs to make the search less stressful. Consider affordable homeownership options such as Shared Ownership, whether you want a new build or a resale, and keep in mind any additional costs you will have to pay as well as your mortgage repayment – rent, service charges, council tax, parking, utilities etc.
Appoint a Solicitor
Once you have found a property and an offer is in place, you will need to appoint a solicitor or a licenced conveyancer to get the buying process in motion. If you are buying a Shared Ownership property, it is best to use a solicitor who is familiar with this type of property sale to avoid delays and ensure a smooth process from offer through to completion. This includes conducting a search, reviewing sales contracts, liaising with all parties involved ensuring it accurately reflects the agreement between the seller and the buyer, and finally registering your ownership of the property at the Land Registry. My most important advice is to let your solicitors know of any issues that may delay your move so they can act quickly to notify all parties to ensure the process runs smoothly up to completion.
Completion
If all goes according to plan, exchange and completion should follow smoothly and you will have fulfilled your dream of owning your own home. If you have bought a leasehold property, I strongly recommend that you observe and perform all covenants as outlined in your lease and be aware of any restrictions in the lease as this could have consequences.
My last piece of advice is to stay focused, maintain clear communication, and engage the services of reliable professionals to guide you through the process with minimal stress.
For more information about our Shared Ownership homes, including Cassia and Nexus, please visit newlonliving.co.uk
First Time Buyer is an exciting bi-monthly glossy which takes a stylish and comprehensive look at all the options available, setting them out in an entertaining and informative way, and helping potential customers navigate their way through what is often a daunting and complex process. We dispel the myths, reinforce the facts and arm the reader with the tools necessary to make their homeownership dreams a reality.
