Where to start when you know nothing about buying a home

How to buy your first home isn’t something you’re taught in school, despite it being one of the biggest milestones you can achieve in life – both personally and financially.  

It’s one of those things you hear about people doing and feel as though you’re expected to know the exact steps they took to get there. But the reality is that many first time buyers don’t know the process of buying a house or apartment. 

That’s where we come in. 

In this blog, we’re providing more context on the stages of buying a home and answering common questions. 

I’m ready to buy a home – what should I do first? 

The first step in buying a home is calculating your affordability. We have two free-to-use mortgage affordability calculators: one for general mortgage affordability and one for Shared Ownership affordability. This will give you an indication of how much you may be able to borrow based on your income and desired mortgage term. 

Doing this will allow you to start searching for properties within your budget and attend viewings of potential homes. Make sure you get the most out of the experience by preparing questions to ask at the viewings, as this will help you find your ideal space. 

When should I speak to a mortgage broker? 

Speaking to a mortgage broker is completely optional, but it’s recommended as they can help you determine the actual amount you could borrow for a mortgage. They also have access to the full range of mortgage products and can help you secure the best loan for your needs.  

It’s a good idea to speak to a mortgage broker before starting the viewing process to make sure you’re searching for a home within your actual budget. 

Do I need to get a mortgage before finding a property? 

No, you don’t need to be approved for a mortgage before viewing properties. It’s best to wait until you’ve found a home you want to buy before applying for a mortgage, as the process will add a ‘hard’ search to your credit file, in turn impacting your credit score, which can affect any future loan applications. 

However, as we previously mentioned, it’s best to have a firm idea of your affordability before beginning your property search.  

What’s an agreement in principle, and do I need one? 

An agreement in principle (AIP), also called a decision in principle or a mortgage in principle, is a formal confirmation from a mortgage lender detailing how much they’re willing to lend you. It’s not a mortgage offer, but it does indicate your likelihood of being approved for a loan.  

Securing an AIP can be beneficial for your property search, as it shows vendors and housing associations that you’re a viable buyer who could see the process through to completion and manage the mortgage repayments thereafter.  

You can apply for an AIP directly with a lender or through a mortgage broker. 

Can I get any deals or discounts as a first time buyer? 

Being a first time buyer doesn’t automatically make you eligible for discounts, but you could be eligible for home-buying schemes that can help you take that first step onto the ladder. 

Property developers sometimes offer incentives like cashback for first time buyers on selected homes or developments, so it’s worth keeping your eye out for any deals that pop up.  

First time buyers also qualify for Stamp Duty relief, the tax payable to the government on property purchases in the UK. You’ll pay no Stamp Duty on property purchases up to £300,000, and 5% on the value between £300,001 and £500,000. If you buy a home valued over £500,000, the normal Stamp Duty rates apply.  

How do I know whether I’m eligible for first time buyer schemes? 

There are several first time buyer schemes available, ranging from government-backed to developer-led initiatives offering different levels of support.  

Each scheme has its own eligibility criteria, so the best way to understand whether you qualify is by checking the conditions for each one.

Our buying scheme hub is full of resources about each scheme, including guides, eligibility criteria and FAQs, to help you find the right one for you.

Share to Buy: Helping you navigate your home-buying journey 

At Share to Buy, we’re here to help you every step of the way. For more information, check out our expert guides covering need-to-know topics, from how much you need to cover the costs of buying a home and understanding mortgage rates to preparing for moving day. 

Create a Share to Buy account to save your property search, make enquiries about homes, register for alerts and more!