For first-time homebuyers, Northampton is an excellent option. Everyone can find what they’re looking for in this diverse selection of reasonably priced houses, convenient locations (whether in the country or the city), and other features. This area is ideal for families and those who work in the metropolis.
However, a first-time house purchase can be a very stressful event. Although Jackson Grundy will do everything in their power to make the process easy for you, there are steps you can take to put your best foot forward at all times. Some items that first-time buyers need to know are listed below.
Know What You’ve Put Down
If you’re a first-time purchase, saving for a down payment will be the single most significant financial goal you’ve ever faced. There are a number of variables that will affect how much of a down payment you’ll need, including:
- The cost of the house
- Paycheck totals
- The amount of money you need or want to acquire
Currently, a deposit of at least 10% of the property’s worth is required. Interest rates on 10% savings will be significantly higher than on 100% deposits because lenders will be taking a greater risk by lending you the remaining 90%.
Lenders are more likely to offer favorable rates of interest if borrowers make larger initial deposits. Competitive interest rates can be found between 15% and 25%.
Learn the Methods that Can Be Used
There are many programs designed to assist first-time buyers like yourself financially. Which one is ideal for you depends on your current financial standing, as well as your short-, medium-, and long-term objectives. Below are some examples of widely used methods.
Aid to Purchase
Northampton’s first-time homebuyers have access to arguably the most popular government program in the country: an interest-free, five-year equity credit for up to 20% of the purchase price. A new construction house purchase with a minimum 5% down payment is required to participate in the program. If the price of the home you want to buy is over £600,000, you won’t be eligible for this program.
Power to Acquire
You may be able to buy the property you are renting from the city government at a reduced rate. Location, size, and style of the property will all play a role in determining the extent of the discount.
To be eligible for a Right To Buy discount, you typically need to have been a municipal (or other public sector) renter for at least three years. There is no requirement that you have leased continuously for the past three years; you could, for instance, have rented privately for a few years in between periods of public rental.
You may be eligible for the Right to Acquire instead of the Right to Buy Scheme. This plan is comparable, but the savings won’t be as great.
Joint Investing
You may be able to buy a piece of a home from the government or a nonprofit housing organization if you qualify for this program. You’ll have to get a mortgage on the part you don’t own and then pay rent on the rest. Over time, you may acquire a larger stake in the land and even full ownership if you so choose.
Case-Dependent Methods
Other programs exist for specific populations, such as those who are disabled, elderly, or London residents. Scotland, Wales, and Northern Ireland residents will face similar limitations and have different choices.
Think About the Hidden Fees
It’s common to neglect other aspects of the purchase when saving for a down payment on a first house. However, there are a ton of other costs associated with purchasing a home for the first time. The following are some additional factors to think about:
- Mortgage Counseling
- Costs associated with hiring a “conveyancer,” a lawyer who makes sure a real estate deal is above board.
- Mortgage-related lending fees are costs you may incur to cover paperwork and other services.
- Home furnishings You may need to replace worn out or outdated pieces of furniture and appliances like a bed, washing machine, TV, etc.
- Expenses related to getting your stuff to your new place, such as hiring a moving company or renting a truck.
- Remember that you will also have to pay for things like gas, water, energy, and internet service in addition to your mortgage.