Step-by-Step Guide to Buying Your First Home

Buying your first home is exciting, but it can also feel overwhelming if you haven't got a clue on how to start. With so many steps involved, knowing what to expect can make the process smoother and less stressful. Here’s a step-by-step guide to help you navigate the home-buying journey with confidence.

#1 Check You Are Financially Ready

Before you start looking at homes, evaluate your financial situation by checking your credit score and reviewing your income and expenses.

Credit score 

The higher your credit score, the better your chances of getting approved for a mortgage and securing a lower interest rate. A good credit score is generally above 881, however, it's possible to get a mortgage with a lower credit score, but you may face higher interest rates or be required to put down a larger deposit. Check your credit score rating for free with Experian.

Create a budget plan 

Factor in monthly wages and expenses, estimated monthly mortgage payments, insurance, council tax, and maintenance costs.

Save for a deposit and legal costs 

Typically, you’ll need at least 5-20% of the home’s price, around £2,000 on solicitor's fees, and if you're planning to purchase a home over £300,000, you need to factor in stamp duty tax.

Visit your local bank to check your affordability

If you need help understanding how much you can afford, visit your local branch or speak to a mortgage broker for a quick decision in principle. This will determine your affordability and borrowing options. Getting pre-approved before searching will save you time.

#2 Research The Market

Understanding the housing market and exploring the different neighbourhoods and their price trends can guide you to buy your first home.

📍 Canary Wharf, London E14. Apartment prices start from £455,00

Check online property listings to get a sense of home prices in a neighbourhood that fits your budget and lifestyle. Consider factors like commute times, local amenities and schools. You could read online reviews, ask for recommendations or look for an experienced agent with strong local market knowledge to guide you through the buying process.

#3 Start House Hunting

Make a list of must-have features vs. nice-to-have features and begin touring properties. Consider factors like the layout and condition of the property, parking availability, and utility expenses like service charges and ground rent for leasehold properties. Be sure to take notes and photos to compare homes.

Take your time with the process to ensure you find a home where you can envision living for an extended period.

#4 Make An Offer

Once you find the right home, it’s time to make an offer. Determine a competitive but reasonable price.

#5 Prepare Your Finance

You'll need to let your mortgage broker or lender know that you've found a property and your offer has been accepted, allowing them to proceed with submitting your loan application for buying your first home.

#6 Instrust A Solicitor

Additionally, you must hire a solicitor to manage the remainder of the transaction until you receive your keys. This is an essential legal procedure that can last up to 20 weeks, depending on the property's type and the solicitor's workload. Leasehold properties generally take longer because of the complexities involved, especially recently with cladding issues.

Here are the legal steps your solicitor will handle on your behalf to complete the sale:

• Draft contract and raise enquiries with the seller’s solicitor

• Arrage property survey

• Conduct property searches

• Liaise with your mortgage broker or lender on your loan details

• Cross-check on all inquiries have been returned and are satisfactory

• Review and sign contracts

• Exchanging contracts with the seller solicitors, which is a legally binding agreement to buy the property with a fixed date for moving in. You will also make a payment of your 10% deposit at this point

• Completion Day! Receive the keys and officially become a homeowner!

Buying your first home is a major life event, but with proper planning and guidance, it can be a smooth and rewarding experience. Follow these steps, and soon you’ll be unlocking the door to your dream home.

About Us

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We are a South East London boutique real estate agency selling affordable modern homes across London. If you’re looking to buy your first home, check out our properties for sale or join our mailing list so you don't miss out on the latest property listings.