Buying a house is, by turn, exhilarating and daunting. With the constant soaring of living costs, the interest rates have gone through the roof, costing first-time home buyers millions of pounds. Despite a larger deposit for your mortgage, you may end up paying a lot of money on interest, thanks to other factors such as your credit history and current financial situation.

When it comes to buying a home, many buyers do not think beyond the prices. Though it is a crucial factor, there are many others that you should consider to avoid ruining the day. It is not easy to shift home, so you should carefully decide whether the property you are buying serves your purposes. Do not make the buying decision impetuously because it involves a lot of money. Once you take out a mortgage, porting will cost you additional money.

What things should you consider while buying a house?

Here are the factors that you should consider while buying a home:

Location

Location plays a significant role when buying a home. You should carefully consider commute time and other amenities while picking a location for your home. If you have not started your family yet, you might think that you will move out to somewhere else where the school for your children is closer, but moving home does not sound possible all the time.

Further, bear in mind you will have to refinance your mortgage and pay off your existing one in full. This will cost you early repayment fees. It is necessary to look beyond the end of your nose while choosing a location for your home.

Here are the things you should consider while choosing a location for your first house:

• Commute time

You should carefully analyse how far your office is from your home, schools and other places like supermarkets. You should choose a location for your house which is not far from your frequently visited places. A huge distance between your home and office will make you exhausted. Unnecessary complications will arise. Problems will double when you have to drop your children off at school, which is also far from your home. Consider all these factors so you do not regret your decision later on.

• Amenities

Another thing to look at is the amenities available in the neighbourhood. Have you picked a location that is bursting at the seams? It is a good idea to choose a location with a rich neighbourhood. In addition to supermarkets, you should look for facilities like gyms, parks, community halls, sports clubs, bars and lounges and the like. Make sure that the location you choose has to offer everything you need for you.

• Safety

Safety is another concern that you need to consider while picking the location for your first home. Of course, you would not dare to choose a location where crime rates are high. It is always suggested that you choose a location where the neighbourhood is rich. Lonely places are more vulnerable to theft and robbery. Check local crime reports to ensure that the area you are picking for your house is absolutely safe.

• Future developments

Future developments are also an important factor to consider while deciding on the location of your home. Are there any infrastructure developments to be done that might affect the value of your house? Remember that all developments do not add up to the value of the property.

Home features

Bear in mind the estate agent is working for the seller, not for you. They would want to sell the property for the highest price possible, so what they say will help them achieve their goal. It is your responsibility to examine the property features and evaluate if they are worth the price the agent is asking you for. Here are the features you should pay heed to while choosing a home:

• Size and layout

The size of your house depends on your household size. The number of households will decide the total space you need. At this time, you might not have children, but factor that into family planning. It will be bothersome to switch between houses every now and then.

• Outdoor space

It depends on the size of a house and whether it has some outdoor space or not. Some houses do not provide outdoor space at all, especially those that are on the side of the street. Evaluate your needs – do you need a small garden or a large yard? Can you manage without a foyer?

• Storage

The space for storage is important because you can store a lot of things you do not need every day. What about the parking space? Is there a driveway or a garage? Does it have a basement?

• Energy-efficiency

Pay heed to double-glazed windows, energy-saving appliances and solar panels to find out whether the house is energy-efficient. Insulation is a must to prevent heat loss and racking up energy bills. Many people take out no refusal payday loans in the UK from direct lenders to meet high energy bills.

You can avoid borrowing money for them if your house is energy-efficient. Make sure that your house lets sunlight come in. There should be ample natural light.

Budgeting

Undoubtedly, you should create a larger down payment. A lot of mortgage providers will let you borrow money with as little deposit as 10%. Still, you can avail yourself of lower interest rates when the deposit size is at least 20%, provided your credit score is good and you do not owe any other small debt like loans for young people. You should prepare your budget bearing the following factors in mind:

• A pre-approval letter

You should get a pre-approval letter from different mortgages to choose the lowest possible rates. Having a pre-approval letter will help you get home quickly because estate agents do not take those people who do not have one seriously.

A pre-approval letter does not reveal the actual rates. You will get the actual quote when you apply for a mortgage formally. After a thorough check of your credit report and current financial situation, your mortgage provider will decide the actual annual rates.

• Closing costs and other fees

Your mortgage does not just include the interest you are to pay. Pay attention to the closing costs as well. The fixed interest-rates mortgage is closed after two or three years at the time of refinancing. Early repayment fees will quickly add up. You should also consider other costs such as property taxes, insurance, maintenance and other fees.

• Increase in the value of property

Your home is like your investment. Make sure you invest in the property that keeps increasing in value. A house is worth investing in if its market price increases over time. This will be considered your capital gain.

The schemes for first-time home buyers

Here are the government schemes you can choose to buy your home:

• Lifetime individual savings account

You are eligible if:

• The property cost must be less than £450,000.
• Your age must be between 18 and 39.
• The first payment must be made to your individual savings account before you turn 40.

The government will contribute 25% of the bonus up to an annual contribution worth £1,000.

• Help to buy – mortgage guarantee scheme

The scheme applies to buyers who cannot have more than 5% of the deposit. The funds will be used to compensate your mortgage provider when you cannot. The scheme is valid until June 2025.

• Help to buy – Wales

You can qualify for this scheme if you meet the following conditions:

• The property price must not be more than £300,000.
• The deposit size must be at least 5%.
• The scheme offers only 20% of the purchase price, so you will have to take out a mortgage for the rest of the amount.

The scheme is valid until March 2025.

The final statement

There are various mortgage schemes available for first-time home buyers. Check your eligibility. However, there are also other factors that you should carefully consider, such as location, features, and amenities.