What advice would you give to a first time buyer?

Question

Any tips or tricks, things to aviod, insurance to take out, was to minimise costs, what sort of mortgage to get. Any and all advice for a first time property buyer would be very welcome

Answer 1

http://www.bankrate.com/brm/news/real-estate/BuyerGuide2004/fthb-tips.asp

Answer 2

Me and my boyfriend bought out first place earlier this year so here's a couple of tips for you.

1) Northern Rock offer some excellent rates and deals for first time buyers including giving you money towards solicitors fees, deposits etc.
2) Try to avoid an interest only mortgage. Yes the repayments are cheaper but you aren't actually paying anything off the mortgage.
3) Make sure you look round your property several times before you're committed. Go at different times of the day and evening. We viewed a property during the day and it was fine but when we went in the evening, we found groups of teenagers hanging around the car parks drinking.
4) Similarly, make sure you look at the area around where your property is
5) Make sure you get the appropriate surveys done particularly if you are buying somewhere older. yes they're expensive, but it will be much more expensive in the long run if you find something is wrong with your property.
6) Try to find out how long your property has been on the market for. We found out ours had been on the market for nearly a year so we took advantage of this and made an offer well below the asking price.

Answer 3

You should definitely visit as many places as possible at different times of the day/ week. When I found the one I liked, it just felt right. The estate agents will try to convince you to buy anything.

I'm still in the process of buying and got a 100% professional mortgage from Standard Life. It's for doctors, lawyers, accountants, etc. If youre not a professional, theres also a 100% one for Graduates from Scottish Widows I believe. That means you get a property with no risk to yourself, ie you do not invest your own money on a deposit. If you already have money for a deposit it can be put to better use ...

I made the mistake of not putting aside enough money for legal fees, surveyor's fees *2, stamp duty, council tax, etc.

Also, I found that once you put in a bid, nothing gets done unless you chase the estate agent, mortgage company, solicitors, etc at least twice a week! It has taken 5 weeks and I still haven't got the contract so can't move in yet :-(

Buy the book 'how to buy a property' from the people that present 'location, location, location'. That was very useful. You can get it from ebay, amazon, etc.

Thats all I can think of for now. Good luck mate.

Answer 4

Get pre-approved with at least 3 mortgage company's before looking for homes. Every mortgage company offers different types of loans which affects the interest rate, down payment and closing cost. It really is amazing how different the down payments and closing costs are. Not to mention, being pre-approved will make it alot easier to get the home your wanting once you found it because you will already be pre-approved and know how high you can take your offer. Also, whatever you do, make sure you get a home inspection before actually buying the house as it could save you thousands of dollars. A home inspection will tell you of any major problems with the house that could be costly to repair. Therefore, if problems are found you are able to renegotiate the price or move onto another home that you like. Either way it is your responsibility to protect your investment. When looking for home insurance, again call around to different company's for quotes, it is a very competitive world. Good Luck & God Bless!

Answer 5

It depends from area to area but some places are dropping in price - especially if you are American where the whole market is dropping in value.

It is not unlikely that this will happen in the UK too - interest rates are now on an upward course. So taking your time is the order of the day and don't listen to 90% of estate agents and people who just want an unrealistic situation to continue. Use this to negotiate a better price.

Use your eyes and ears and make your own judgement!

Answer 6

Interest only mortgage to begin with ( preferably a current account offset ) that way you live in the best house you can get let the equity grow faster than a smaller house and move evry 5 years ( in the last 50 years houses have doubled every 7 years)

Repayment mortages mean you live poor and cant get at your equity until you are ready to downsize ( dont forget quality of life when you first start)

Current account offset means you get the benefit of evry pund that you have during the month ( tip is to have your salary paid in at the begining of the month and have all your standing orders go out at the end that way your regular bills are contributing towards your mortage= you have to be disciplined to do this and not spend the gas bill but thats the responsibility of being a home owner)

Answer 7

First, there are a ton of first time buyer programs, you should ask your local bank. Many of these programs will provide benefits such as no PMI or pay the closing costs or even a grant to help you pay for the house (only in special areas).
I would check with at least three banks to see what type of programs they have available. This money is provided through the gov't, so they should have similiar programs unless they hav filled their quota.

Answer 8

#1 find a mortgage company that can provide the "first time buyer" loans. #2 find a realtor knowledgeable about the area you're interested in living in. Not a newbie, someone who has at least a GRI or CRS designation. If I can assist further, email me.

Answer 9

When you think you have worked out a budget, check check and check it again. Then add about 30% more, as there are always things that you least expect. Make sure you also get a reputable Financial Adviser, it is cheaper in the long run.

Answer 10

If you are building, get everything in writing. We're building and the salesman we were dealing with has left the company. Now we find that, for example, the decorative brick coynes we were promised are not available with the elevation we chose. We may not have a leg to stand on now.

Answer 11

My top tip would be..... A trip to the Doc's for a 3 month prescription for valium!, then a good solicitor then your bank for a mortgage. A trip to a financial advisor would be very worthwhile. Good luck!