Beginners guide to buying your first home with a loved one…

While couples up and down the country celebrate Valentine’s Day, some may well be thinking about taking that next big step.

No, not kids, we’re talking about getting out of the rental market, or moving out of your parent’s house and buying your first property together.

We won’t lie, it’s a major step for anyone and it will most likely be the biggest financial investment you’ll ever make. Buying a home can also be one of the most stressful things you’ll ever do, but also one of the most exciting! But, here at Shropshire Homes we have over 35 years of experience in helping people buy their dream property.

Below are our tips to help couples buy their first home:

budget
  1. Budget

This is the big one. You need to have a clear idea about what you can afford. Because this will be a major investment by you and your partner, you need to sit down, look at your income and outgoings and come up with a realistic and honest assessment of what you can afford.

searching
  1. The search

Whether it’s a one-bed town centre apartment, or two bed semi-detached house in the suburbs, it’s crucial you have a clear idea about the type of property you want and where you want to live, otherwise you’ll get bogged down with too many properties to choose from.

important
  1. Decide what’s important

You also need to filter your search and consider what are the must-haves. For example, do you need to have things like off-street parking, garden, en-suite bathroom, separate living and dining rooms, and so on. But try to be realistic in your search. It’s rare that people, particularly when looking to get on the property ladder for the first time, will find a home that ticks every box. Sometimes you have to accept that what you want either isn’t available, or is way outside your budget.

mortgage
  1. The mortgage

Don’t be embarrassed if you don’t know much about mortgages. You weren’t taught about them at school and the only time you have anything to do with them is when you’re buying a property.

 

The simple guide to mortgages is there are two main types:

We can put you in touch with our mortgage advisors for free mortgage advice. Just get in touch via our sales advisors, or alternatively call New Homes Mortgages on 01543 464144 or RSC on 01614 866278.

  1. How much can you borrow?

When a mortgage lender looks at how much they will give you, they will look at your income and your outgoings. So, the more money you are committed to spending each month, whether that’s on direct debits, eating out, drinking, subscriptions/membership fees etc, the less you can borrow. You can find many calculators online to help you, but keep in mind the figure given should be used as a guide.

  1. Work out your loan to value (LTV)

You’ll see this term a lot and, in a nutshell, this is the ratio between the value of the loan you take out and the value of the property, expressed as a percentage. The remaining value is paid as a deposit. For example, if you’re looking for a property that is valued at £150,000 and you have £30,000 available to use as a deposit, you’ll need a loan of £120,000 in order to purchase the property.

So, calculating your LTV is simple. Take the amount you need to borrow, divide it by the value of the property and multiply by 100 to get your percentage i.e 120,000 ÷ 150,000 x 100 = 80% LTV.

  1. Viewings

This is definitely the most exciting part!

viewing a property

With the likes of Rightmove available at your fingertips, you can view countless properties from the comfort of your sofa, but nothing beats physically walking around a property and getting a real feel for it. But try and see a good number of properties so you can get a clear idea of what’s available for your budget

Below is a list of a few things to consider when you’re viewing a property:

Remember, treat buying your first home like an adventure, or like a relationship – it’s exciting to start with, but stay focused and committed to it so the enthusiasm doesn’t fizzle out!