First Time Homebuyer Tips: What You Need to Know Right Now

Buying your first home can feel like solving a giant puzzle. You’re juggling savings, loan questions, and the fear of making a mistake. The good news? Most of the pieces are easier to understand than you think. Below are the core things you should focus on to move from dreaming to owning.

How Much Do You Really Need for a Down Payment?

Many first‑timers hear “20% down” and assume it’s the only way. In reality, lenders offer 5%, 10% or even 3% options, especially for government‑backed loans. A 5% deposit on a £200,000 house is £10,000 – far less than the mythic £40,000. The lower the deposit, the higher your monthly payment, so balance what you can afford now versus later.

Tip: Start a dedicated “home fund” account and set up an automatic transfer each payday. Even £150 a month adds up fast, and you’ll see progress without feeling the pinch.

Getting Approved for a Mortgage Made Simple

Your credit score is the first gatekeeper. Aim for at least 620 for most basic loans; above 700 gives you better rates. Pull a free credit report, fix any errors, and pay down high‑balance cards before you apply. Lenders also look at your debt‑to‑income ratio – keep it under 45% for a smoother ride.

When you meet with a mortgage adviser, bring recent payslips, tax returns (if self‑employed), and proof of any savings. Being organized shows you’re serious and can speed up the decision.

Budgeting isn’t just about the deposit. You’ll need cash for legal fees, stamp duty, and moving costs. Add another 5% of the purchase price to your savings goal and you’ll avoid surprise expenses at closing.

Don’t overlook local assistance programs. Many councils and charities offer grants or low‑interest loans to first‑time buyers. Search for “down payment assistance” in your area and see if you qualify – it can shave thousands off your upfront cost.

A common mistake is skipping the pre‑approval step. Getting pre‑approved tells sellers you’re ready to move, and it locks in an interest rate for a short period. It also helps you shop within a realistic price range, keeping the hunt focused.

Finally, make a quick checklist before you start house hunting:

• Saved at least 5% of the target price for deposit
• Credit score 620+ (higher is better)
• Debt‑to‑income under 45%
• Pre‑approval in hand
• Knowledge of local assistance options

First‑time buying isn’t a race. Take each step, use the tools available, and you’ll find the right home without blowing your budget.