We often hear the house buying process described as a journey, and it really is! From those early explorations, to applications and post-completion queries, there are different considerations along the way. Metro Finance is here to help at every stage.
Building your Foundation
As you make your first steps towards finding and applying for your new home, you want to set yourself up to a solid start.
A broker can help you understand the monthly costs depending on how much money you would need to borrow. And it is important you consider these costs alongside other anticipated expenditure. Think about the life you want to enjoy once you have secured the property and the budget you need for this.
Research the area you want to live in and assess your costs, these could change from your current expenses, particularly when it comes to commuting and bills associated with your new home.
Check your credit file – all lenders assess this when you apply for a mortgage. Addressing potential issues early on allows you to better your application position. If you can reduce or clear any credit you hold, this will reduce your outgoings and could positively affect your mortgage application.
Be prepared to save for more than just your deposit. Schemes like Shared Ownership consider deposits as low as 5% of your share value, but you will still need to cover legal fees, moving costs and other potential application fees. Once you have secured the property, you will want to make it your own, so consider furnishing and decorating costs too. See example below.
Proactive Application Process
To ensure things move as swiftly as possible, keep in control of what you can. Documents are necessary for lenders and solicitors, and may need to be updated as the application progresses.
Avoid moving your deposit money around, this will only complicate the audit trail you will need to provide. Be prepared to produce new payslips and bank statements as time elapses, the quicker you can respond to requests for these, the sooner you will move through key stages of the application process.
Avoid making major financial changes, such as taking on new debt or changing jobs, as any substantial change in circumstance will need re-assessment and approval by your lender. This may be the case even after receiving your mortgage offer.
Post-Completion Comfort
After you have moved into your new home, set yourself up for stress-free enjoyment.
After all that application paperwork, make sure you keep copies of warranties and ownership documents somewhere safe and accessible.
Arrange utility and council tax payments, notify providers early to avoid overpayments or penalties. Make sure your existing address details are updated with all necessary parties – banks, HMRC, employer, DVLA, electoral roll. Think about any correspondence and update it to avoid letters being sent to your old address.
After what may feel like a lifetime of saving for your deposit and moving costs, try to maintain that saving mindset! Homeownership comes with unexpected costs, so having an emergency buffer gives peace of mind.
Similarly, ensure you have adequate protection for yourself and your property through insurance – this might include life, critical illness, income protection, buildings and contents insurance.
Enjoy exploring your new local area and community. A quick chat and a cuppa with neighbours can unlock a wealth of local knowledge. You will feel settled in no time.
Most importantly, relax and enjoy the new home you have worked so hard for!
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.
