Home Buying Rules – What Every New Buyer Should Know

Thinking about buying a house can feel like stepping into a maze. The good news? You don’t need a degree in finance to get through it. Below are the must‑know rules that will keep you on track and help you avoid common pitfalls.

Down Payment & Credit Basics

The first rule is to know your down payment. Most lenders expect 5‑10% of the purchase price, but some programs let you put down as little as 3% if you qualify. A smaller deposit means higher monthly payments, so run the numbers before you settle on a figure.

Your credit score is the next gatekeeper. For a £300k house, a score above 620 usually gets you decent rates. Anything below that can cost you extra interest or even block the loan. Boost your score by paying bills on time, reducing credit card balances, and checking your report for errors.

If you earn around £30k a year, don’t write off homeownership. Look for government schemes, shared‑ownership deals, or lender‑specific programs that accept lower incomes. The key is to match the loan type to what you can realistically afford.

Navigating Shared Ownership & Agent Advice

Shared ownership can be a smart way to step onto the property ladder. You buy a share of the home (often 25‑75%) and rent the rest. That rent is usually lower than a full‑market rent, and you can buy more shares later.

Before you sign, check who the “shareholders” are and whether you’ll ever get a monthly dividend. In most schemes you won’t receive regular payouts – the money you put in builds equity instead. Read the lease carefully to know your responsibilities for repairs and service charges.

When you’re ready to talk to an agent, skip the script. Start with a simple greeting, state whether you’re buying or renting, and ask about the property’s price, fees, and any shared‑ownership options. Good agents are transparent about costs and will answer questions like why a down payment might be higher for a shared‑ownership deal.

Don’t forget to ask about valuation. A proper property valuation tells you if the asking price lines up with market trends. It also helps you negotiate a fair mortgage amount.

Finally, keep a running checklist: deposit amount, credit score, mortgage pre‑approval, shared‑ownership eligibility, and agent communication. Tick each box before you make an offer, and you’ll walk into the negotiation with confidence.

Home buying doesn’t have to be a mystery. Follow these rules, stay organized, and you’ll be holding the keys sooner than you think.