Advice for all you First Time Buyers (Buyers Guide: Houses)

Member Name: Foxy-Lady

Product:	Buyers Guide: Houses
Date:	17/01/02 (206 review reads)
Rating:

Advantages: Better mortgage deals for First Timers

Disadvantages: Complicated jargon, Hidden costs, Hidden problems

I know from experience that buying your first home can be a very daunting prospect to say the least. My husband and I have recently taken the huge leap and purchased our first house.

A mortgage is usually the largest financial commitment that people make during a lifetime, and it is important that anyone contemplating taking such a big step, is able to make an informed choice.

* I would advise anybody to see a Financial Advisor before you start looking for a property. They will give you the basic facts that you need to know and can tell you how much you will be allowed as a mortgage (this is normally 2.5 times you and your partners joint wages, although it can be a bit more in some circumstances). It is better to know this right from the outset as it saves you from getting your heart set on a house that ends up being out of your budget.

* Most companies will only allow you a mortgage if you have been at your current workplace for at least three months. There are exceptions but it is definately worth waiting if you have only been working somewhere for a short period of time. It means that when it comes to applying for a mortgage, you will have more options and access to better deals, some of which even offer cashback.

* The whole process of buying a home can unfortunately take a long time so you have to be patient and be prepared to wait. More often than not, you will get involved in a *chain*. This is where the sale can not go through because the vendor is not able to move into their new property, and so on. (Very confusing!)
When buying our home, my husband and I were very lucky because ours was available with vacant possession - no one living in it.

* You must be aware that buying a home can be very costly before you even get the keys. Dont forget that you will have to pay a deposit on your home (5% of the value), although it is possible in some cases to get a 100% mortgage where you will not have to fork out for th
is deposit. The solicitors who handle the deal will charge you fees of approximately £450. This covers things such as mining searches on the property, aswell as their basic fees just for time and paperwork etc. There will also be a valuation fee of around £125.
You may be subject to paying Stamp Duty too but I think this all depends on the area in which a property is situated. It is about 1% of the value.

* When it comes to choosing a home, those rose tinted glasses have got to go!! Be realistic. If you really like a house but it appears to need a lot of work doing to it, weigh it up. Is it really worth it? It could cost a lot of money in the long run and I think we could all do without these extra costs!

* If you are anything like me and my husband were, you will not know the first thing about what to look out for when looking at houses (things like damp patches and dry rot). Get advise from people with experience, such as friends and relatives, who have purchased homes before. Everyone has their own story to tell of their experiences - problems that they had, mistakes they made and things that went wrong for them.
When my husband and I first looked at the house we went on to buy, there was no one living in it. All water and gas was disconnected so we did not exactly see everything in full working order. The house was advertised as having gas central heating and we saw the boiler and radiators in the house, so thought nothing of it. When we moved in, we found out that the boiler did not work - we had no hot water or anything - and it cost £500 to fix it. Estate Agents dont always check these things (although I dont think that this is fair) It is mainly up to you to make sure everything is as it should be.

* Do not be worried about questioning anything that you dont agree with or do not think is right. At any point, if there is anything you dont understand, just ask. Just because Estate Agents and Financial Advisors know what they
are talking about, they can easily assume that you do too. Do not be kept in the dark!

* When you have chosen the house that you want, remember, the asking price is only there as guideline and is usually a bit more than it is actually worth. Make your first offer lower than the asking price, after all, you have got nothing to lose by doing so and they might even accept!!

* If there is any maintenance work that needs to be carried out to the home that you are interested in, ask about it. If you are lucky, it could be arranged that this work (or some of it) is to be done as part of the deal.
Our house had a garage which did not have a roof on it and was full of junk (and the roof that had fallen inside!). We mentioned it to the Estate Agent and it was sorted out ready for us moving in!!

* A survey will be carried out on the property when the sale begins to go through, and a report of this will be produced. This will bring your attention to anything being wrong with the property. If there does happen to be any problems, do not be afraid of backing out at this stage. You may lose a bit of money that you have already paid towards the survey, but if you carried on, it could be a lot more costly in the future.
We put an offer on another house before we bought our current one. The first one showed signs of woodworm in the survey report but we were assured that it was from a past *epidemic* and that it had been successfully treated. After a lot of discussions, we decided that we would cut our losses. We did not want to risk it in case the woodworm ever returned as it is very expensive to treat.

* When you look round houses, they are obviously full of the families belongings (unless the house is not occupied). Make sure that you are clear about what is included as part of the sale. When you finally sign papers, lists will be provided showing every single item that should be in the house, but ask beforehand. It is no good expecting
that really nice cooker, which appears to be part of the fitted kitchen, to be there when you move in, and then finding out on the day that the family have taken it with them!

I hope anybody that is just about to buy a home, finds some (if not all!) of my advice helpful. It would have been useful for me! I will update if I think of anything else that may be of use.

Good luck and happy hunting!!!!!

Summary: