Top tips to secure your new home

Buying a new home is hugely exciting and emotional, but there’s a lot of structured, carefully considered logistics that are needed behind it all too.

Clever financial planning can help your homebuying experience be as stress free as possible and give you a leg up in a competitive market. So, where should you start?

Our new blog article is full of top tips about financing a new home, from mortgage deals to credit scores to those all-important emergency funds. It could help you to secure your perfect new build at The Folly, Hornsea.

Start a spreadsheet

Start by honestly assessing your current financial situation. A spreadsheet is probably the best way to do this as you can draw up different columns for income, expenses, debts, and savings. You could also use a budget tracker, like this one from Citizens Advice.

Try to work out exactly what you spend each month, including the money you spend on meals out, coffees, clothes and takeaways. Sometimes listing the non-essentials can help you find places to save, so it’s a useful thing to do in that sense too.

Set a realistic budget

Certainly, you might have to stretch yourself when it comes to buying a new home, but not so much that you have nothing left over – you still need to enjoy life and have a bit of money for emergencies.

Remember that there is more to buying a home than the simple cost of a house. Stamp duty, solicitor fees, removals and furniture can mount up and come in at the same time. There are the ongoing costs too. Things like council tax, utilities, insurance, and maintenance should all be considered.

Save for a deposit

For many people it’s the deposit that can make house buying tricky, so it is worth saving for this as early as possible. Having at least 20% of the home’s purchase price can have a huge effect on your mortgage offer, so saving is key to get the best rate.

Shop around for a mortgage

There are many and varied mortgage types on the market, and they are not one size fits all. Starting your research on a price comparison website often makes sense, you can then use that as your base. Fixed-rate, trackers, early repayments costs and the length of the contract should all be part of your decision-making process. If your earnings are not straightforward, for example if you are self-employed, then you could use a mortgage broker for bespoke advice too. If you do go down this route, be sure to check their broker fees and rates before you begin proper discussions.

Reduce your debt

Debt can have a big impact on the type and quality of mortgage you are offered, so it’s important to pay off as much as you can. High interest loans like credit cards can have the biggest impact, though student loans are often part of the consideration too. It’s about showing your lender that you are on top of your spending and living within your means.

Know your credit score

Mortgage lenders will check your credit score before they hand out any money, so it’s a good idea to make sure yours is in good order before you start applying. Your credit score is an insight into your borrowing history – do you pay bills on time for example? And what types of loans have you taken out in the past?

There are a number of credit reference agencies (the best known are probably Experian or Equifax). The good news is that you can improve your rating quite quickly. Start by paying down your debts and closing any credit cards that are no longer in use.

Build up a buffer

For most of us, buying a house takes years of careful saving and it doesn’t stop when you’ve reached your deposit goal. It is recommended that people should ideally have about six months’ worth of living costs saved up in case of emergencies. After all, rainy day money is an important safety net.

Stay informed

Buying a house requires you to be fully engaged – with the current market, with inflation rates, with the news, and with estate agents and developers. It can feel a bit like a full-time job but it’s definitely worth the effort. You will be able to make informed and confident choices, even when you need to do it quickly. By keeping in touch with agents and expressing your interest you will also keep yourself on their radar in case your perfect house suddenly becomes available.

To find out more about our new homes at The Folly, Hornsea, browse our website and get in touch.