First Time Home Buyer – Everything You Need to Know

Buying a home for the first time can be daunting and overwhelming. But with the right information and advice, you can make the process easier and less stressful. In this article, we’ll cover everything you need to know about first-time home buying – from the basics of mortgages to the process of finding the perfect home.

First Steps: Finances

The first step to buying a home is assessing your finances. This means taking a look at your income, expenses and credit score. You’ll need to have enough money saved to cover the down payment (usually around 5-20% of the total cost of the home) and closing costs (typically 1-5% of the purchase price).

It’s also important to have a good credit score, as this will affect the kind of mortgage you can get. The higher your score, the more likely you are to get a better mortgage rate. You should also make sure you have enough money saved to cover the costs of moving and furnishing your new home.

Mortgage Basics

Once you have a good handle on your finances, it’s time to start looking into mortgages. A mortgage is a loan taken out to purchase a property. The amount of the loan is usually paid back over a period of time, usually 25-30 years.

Mortgage rates vary depending on the type of loan, your credit score and the length of the loan. It’s important to shop around and compare rates from different lenders to find the best deal for you.

When you apply for a mortgage, you’ll need to provide information about your income, employment history and credit score. The lender will also carry out a credit check, to make sure you can afford the loan.

Find Your Perfect Home

Once you’ve been approved for a mortgage, it’s time to find your dream home. Start by deciding what kind of property you want – a house, a flat, a bungalow, etc. Make sure to consider factors such as the size of the property, the location and the number of bedrooms and bathrooms.

You should also think about what kind of neighbourhood you want to live in. Do you want to be close to amenities such as schools, shops and public transport? Do you want to be in a quiet residential area or a vibrant city centre?

Once you have an idea of what you’re looking for, you can start searching for properties. You can use online property portals like Rightmove or Zoopla, or you can find a local estate agent who can help you find the perfect home.

Making an Offer

When you find the right property, it’s time to make an offer. You can make an offer directly to the seller or through an estate agent. Generally, you should offer the asking price or slightly below it. You’ll also need to provide proof of your mortgage approval.

The seller will then either accept, reject or counter-offer your offer. If they accept, you’ll need to sign the contract and pay a deposit (usually 10% of the purchase price). The next step is to arrange a survey and a valuation to make sure the property is in good condition.

Exchange and Completion

Once the survey and valuation are complete, you’ll need to arrange the exchange of contracts. This is the point at which the sale becomes legally binding. You’ll need to pay the rest of the purchase price (minus the deposit) and set a completion date. The completion date is usually two to three weeks after the exchange.

On the day of completion, the purchase will be finalised and you’ll become the legal owner of the property. You’ll need to pay the remaining costs, such as stamp duty, solicitor’s fees and the mortgage lender’s fees.


Buying a home for the first time can be a daunting and stressful process. But with the right information and advice, you can make the process much easier. Start by assessing your finances and getting a mortgage. Then you can start searching for the perfect home. Once you’ve found it, you can make an offer and arrange the exchange and completion. By following these steps, you can ensure a smooth and stress-free first-time home buying experience.