Buying Your First Home: Where to Start Without Feeling Overwhelmed
Buying your first home can feel like standing at the bottom of a mountain with no map. The good news? You don’t need to have all the answers right away. You just need to take the first steps with clarity and confidence.
This guide strips away the fluff and gives you a simple plan to get started without feeling like you’re drowning in jargon.
Step 1: Know Your Budget
Before you even start scrolling through Rightmove, you need to know how much you can spend. It’s not just about the property price – there are extras that first-time buyers often overlook:
- Solicitor fees
- Stamp Duty (if applicable)
- Surveys and valuations
- Removal costs
- Insurance
A good rule of thumb is to build a buffer of a few thousand pounds for these extras. Get familiar with your monthly income and outgoings – lenders will want to see this, and it’ll stop you from over-stretching yourself.
Step 2: Save (or Lock In) Your Deposit
Most first-time buyers aim for 5–10% of the property price as a deposit. The bigger your deposit, the better your mortgage rate options.
Top Tip: Keep saving even after you’ve reached your deposit goal. Unexpected costs can crop up, like a pricier survey or higher solicitor fees, and having a bit extra makes life easier.
Step 3: Get a Mortgage Agreement in Principle (AIP/MIP)
An AIP or an MIP (Agreement in Principle/Mortgage in Principle) is a statement from a lender confirming how much they’d be prepared to lend you based on your income, deposit, and credit history.
Why it’s crucial:
Sellers take you seriously when they see you’re “finance ready.” It sets clear price boundaries, so you don’t waste time looking at homes you can’t afford. It gives you a confidence boost when making offers. An AIP/MIP usually lasts 30–90 days, which is plenty of time to house-hunt and make an offer. It’s not legally binding, so you can still shop around for the best mortgage once you’ve found a property.
Step 4: Keep It Simple
Forget trying to learn the entire home-buying process at once. For now, focus on:
- Getting your deposit sorted
- Knowing what you can borrow
- Having your AIP/MIP ready
Once these steps are done, the rest of the process will feel a lot less overwhelming.
Final Word
Buying your first home doesn’t have to be a stress-fest. Start with your budget, lock in your deposit, and get that AIP/MIP. Do these three things and you’ll already be ahead of most first-time buyers.
FAQs for First-Time Buyers
1. How much deposit do I need as a first-time buyer?
Most lenders require a minimum 5% deposit, but having 10% or more can unlock better interest rates and lower monthly repayments. For example, on a £250,000 property, a 5% deposit is £12,500, while 10% is £25,000.
2. What is an Agreement in Principle / Mortgage in Principle (AIP/MIP)?
An AIP/MIP is a quick check from a lender confirming how much they might be willing to lend you. It’s not a final mortgage offer, but it shows sellers you’re serious and ready to proceed.
3. What costs do first-time buyers often forget?
Beyond your deposit, don’t forget about solicitor fees, Stamp Duty (if applicable), surveys, moving costs, and insurance. These extras can easily add up to several thousand pounds, so budget for them early.
4. Can I still get a mortgage with a low credit score?
Yes, but your options may be limited, and interest rates could be higher. Improving your credit score, even slightly, before applying can make a big difference. Start by checking your credit report for errors and clearing any outstanding debts.
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