Finally ready to buy a house? You need to read this ultimate guide for first-time homebuyers in the

The process of buying a house can be time-consuming and quite stressful. Not to mention, it is of the utmost importance you have the financial means necessary so you can make this dream of yours come true. Perhaps you have lived many years in rented houses or flats and now you are finally ready for this next step. It is crucial you know the essential steps in this process of buying a home, especially if this tremendous change is a first-time event.

More people are renting a house in the UK than they are buying, mainly because of the incredibly high costs and the process being quite complex. Although the rental market is expected to continue to grow, and the UK will likely become a country of renters mostly, some people are still looking for home security. If you have the budget for it, it is vital to know what else you need to do to acquire your dream home.

The following guide will be able to help first-time homebuyers devise a strategic plan of action:

Get your finances together and set your budget

If you skip this first essential step, you might not be successful in securing a house, given that there are many costs, both upfront and ongoing, that you have to consider. Therefore, before anything else, you should put on paper your finances: from your monthly or yearly income and expenses, the possibility of putting aside some money, if you have any financing option, and so on. This will help you decide on a budget.

Setting a budget will show you the amount of deposit you are able to put down. Usually, banks require from 5% to 10% of the property’s value as a deposit. The more you manage to save, the less you will have to pay. What’s more, when it comes to mortgages, you will be able to receive less expensive options. Once you have all your finances together and are decided on an approximate budget, it is crucial you learn how to get a loan and what type of mortgage is preferable.

Get a loan

If you need to get a bank loan, the three significant factors must help your case. Depending on your salary, ongoing expenses, and credit score and history, you will be eligible to get a loan. Your income and outgoings are closely related to the credit score you have achieved. This shows you whether you have any worrying aspects, such as bad debts or any payment arrears. The chances of you getting the loan are dependent on you having a good credit score.

Get a mortgage offer

The mortgage is a monthly fee with an interest rate that you are required to pay to the lender. From this amount, the deposit is deducted. There are two types of mortgage rates, and, as a first-time homebuyer, it is crucial you know the difference between them.

• Fixed rate: As the name says, a fixed rate mortgage has a fixed interest rate. For this reason, this type is the preferred option for first-time homebuyers, as it gives them more stability. Given that the interest rate is fixed, the amount will remain the same regardless of any interest increase or decrease. The repayment period is set on a specific number of years. A noteworthy mention would be that you will have to suffer the Early Repayment Charge penalty if you decide to leave before the term finishes.

• Variable rate: In contrast with the fixed rate, the variable interest rate is more uncertain, given that your mortgage fee will rise or fall accordingly. It is either dependent on the Bank of England or established by the lender. This type of rate mortgage is not favoured by individuals buying their first home, given that changes might appear at any time.

Another essential aspect to learn about mortgage, apart from the monthly repayments you will have to make the first month after buying the house, is mortgage-related costs. These include an arrangement, booking and valuation fee, and you can either pay them upfront or the lender will include them within the mortgage.

Decide on the most suitable location

The decision of buying a home is not easy to make, and it is crucial you make sure the property that will become your home is in a location that suits your needs. Not only is it necessary that the house will match your preferences and has enough space for you or your family, but where the property is located can enhance the quality of your life. If you find a home you love and start the buying process while having second thoughts of the area, this might not be a good sign. So, make sure you have all your filters clearly defined: area, transportation available, whether it has a parking spot, amenities, and so on.

Deciding on an area will help you narrow down your search. There is no point in losing precious time looking for houses in an area that is not convenient for you. Once you have this determined, it might help you to ask a real estate agent for professional assistance. They can offer their expertise to help you find a house in your preferred location by providing an area guide with available properties. The golden rule before deciding on a home is to view as many properties as possible, and inspect the market, and your options, thoroughly.

Put an offer on your chosen home

Once you have found the house of your dreams, it is time to put an offer on the property that will give you an advantage in front of the other possible buyers. This offer is made to the real estate manager. Fostering a strong relationship with the real estate agent and manager will be to your advantage. If you have all your finances prepared and are willing to pay a small holding deposit – this is not a general requirement – your case will be stronger, and you show your commitment. And don't worry about this deposit, as if the sale doesn't fulfil, you will get it back.

Last but not least, when the offer has been confirmed and approved, you will need to hire a solicitor. They are legal professionals who specialise in the specific legal work of selling and buying properties. Plus, they have the proper knowledge to finalise all the necessary documents that prove you own the property.