Buying your first home will probably be one of the biggest financial commitments you will ever make, but also one of the most rewarding and exciting.
For many first-timers, the homebuying process will often by unclear and confusing. Award-winning house builder, Cavanna Homes, share their top tips on the buying process from reserving your first new home, to arranging your mortgage and exchanging contracts.
Before you make any decision or start browsing homes for sale, the first stage is to work out how much you can borrow from the bank and how much deposit you will require. Then you will need to agree the mortgage in principle.
Take a look at Cavanna Homes’ quick and easy-to-use mortgage calculator on their website (www.cavannahomes.co.uk/mortgage-calculator/), which provides an estimated figure on how much you would need to borrow and a guide to monthly mortgage payments.
It is also worth noting that when looking into costs you are not tied into anything – you have the option to choose a different provider later on down the line.
There are also a number of schemes, such as Help to Buy, available to support first-time buyers as they step onto the property ladder. If you qualify and have a 5% deposit, Help to Buy enables you to take out a 75% mortgage with the help of a Shared Equity Loan from the Government of up to 20% of the value of the property. For more information on the Help to Buy scheme, visit Cavanna Homes’ website or watch this useful video here
Finding your dream home! This is usually the best part of the process, but also the most time-consuming. Most first-time buyers will have a list of what they are looking for in their first home; what they must have and what they’d like to have.
However, it is worth keeping an open mind on what you could be flexible on.
Top tip: speak to the sales advisors at the development you are looking at to see what special offers and discounts are available. Cavanna Homes has a variety of offers running every month so it is worth checking!
When buying your first new build home you will need to pay a reservation fee. This allows you to secure your chosen house to prevent other home-buyers from beating you to the purchase.
Cavanna Homes asks for a reservation fee of £1,000 which goes towards the purchase price, and the Help to Buy reservation fee is £500. So, when looking at new homes make sure you are in a position to pay your reservation fee before it is too late!
There are so many options to consider when it comes to getting a mortgage, such as which lender to go to with and researching who provides the best rates.
Speaking to a mortgage advisor or independent financial advisor is an important stage in the buying process. For home-buyers looking to purchase a Cavanna Homes property, the team are happy to put you in contact with a recommended independent financial advisor so you can ask any burning questions and select the best option for you.
The next stage is finding a solicitor that specialises in conveyancing (preparing property transfer documents). They will take care of all the legal aspects of the home-buying process for you, however this is an element you will need to make sure you budget for. Cavanna Homes can recommend a Solicitor with pre-agreed special rates for customers to help make those legal fees slightly less intimidating.
Your mortgage lender will want confirmation that the house is worth what you’re paying for it, so the next step will be to arrange for a property valuation which can then be shared with your mortgage lender.
As part of the valuation, you should also arrange to get a survey completed on your new home, which is a comprehensive check on a property highlighting any structural problems. Both the survey and valuation will incur a fee, so this should also be factored into your budget planning.
Process checks will be carried out by your solicitor and will involve formally transferring ownership from the house builder or previous home owner, to you. Checks to ensure there are no legal obstacles in the way will also be carried out, such as Local Plan which may affect the value of the property.
Once all the legal work has been carried out and processed by your solicitor, you will then be able to exchange contracts. If you are purchasing a new home you will be asked to pay a deposit, usually 10% of the cost of your new home, to confirm that you will purchase the property. However, the Help to Buy exchange deposit can start from 5%.
Finalise legal completion and move in! On the day of completion, the purchase monies are transferred from your Solicitor to the seller and you become the legal owner of your new home.
Buying your home is an exciting time, but budgets can often be very tight with different fees to take into consideration, including the valuation and survey, solicitor fees and down payments.
Most first-time buyers won’t have a big budget left to redesign or renovate, so finding a house that is already in a good condition is great bonus. Each Cavanna home is built to the highest standard, and as a new build, you will have the joy of moving into a home that offers a blank canvas for your own interior design.
For added peace of mind, all Cavanna properties come with a 10-year NHBC warranty and an initial Cavanna Homes customer support package for two years.
For further information on Cavanna Homes, please visit their website here: www.cavannahomes.co.uk/, or speak to a member of the team on 01803 618688.