Buying a place of our own is a much coveted dream for many of us.  After a hard days work it's lovely to be able to go home to a place we can call our own, shut the door on the world, and put our feet up.  1^st Quote has put together a guide to happy home-buying.

First Time Buyer

Being a first time buyer can be a daunting and expensive process.  It may be beneficial to try and get a joint mortgage with friends or family if possible.  Many local councils are now offering shared ownership schemes, which can help to lower costs, but still get you that all important foot on the property ladder.  As a first time buyer you will have no chain and this can be appealing to those looking to sell - you can use this as a bargaining point.

Looking Around

There are many places to shop for a home.  Estate agent windows immediately spring to mind.  The local paper will have properties printed from all the estate agents in the area so this is handy if you don't want to trawl round town.

The internet is becoming increasingly popular for looking for property, with many easy to search property sites.  Alternatively many people are now selling their houses independently due to rising costs - look out for signs out and about

Viewing

Always make sure you have a clear list of things to look for / requirements before viewing and make a checklist.  Weed out strong possibilities first, that way you can spend the majority of your time viewing a handful of properties which you are serious about.

Always view in daylight!  Make sure you look beyond the décor in case of any hidden damage / problems and inspect fully all areas!

Don't feel ashamed to view more than once if you are really interested - and where necessary take professionals along with you to assess any work that needs doing.

Selecting a Mortgage

An offer which boasts no arrangement fee or a low initial rate can be appealing, especially when you have to pay out for solicitors fees, stamp duty, surveys etc, but beware as they may sting you later with clauses and high interest.  Although Banks and Estate Agents can help find you a mortgage, an independent mortgage advisor is also an option and it may be worth getting advice from more than one source.

Remember, the more deposit you can stump up, the better the deal you are likely to get.

Making an offer

Making an offer below the asking price is tempting as it means you could save a few quid.  But if it's your dream home, and you think it's fairly priced, it might be worth considering the full asking price to avoid losing out.

You can place an offer on the condition that they remove the property from the market, although not everybody will agree to this.

Take out insurance before you instruct your solicitor - if it all falls through then you should be able to claim back any money already spent on fees.

Surveys

The mortgage lenders survey is in essence used to confirm the value of the property.  There are two types of survey, the homebuyers survey, which focuses on essentials, urgent problems and significant defects.  The buildings survey provides a much more detailed report on the condition of the property, but is of course more expensive.  This survey might be prudent for an older property, a listed property, or one of unusual construction, but can be carried out on any property for peace of mind.

Insurance

There's nothing to say you must take the insurance offered by your mortgage lender.  It is usually a condition of a mortgage to take out buildings insurance, but that doesn't mean you can't shop around.

25% of homeowners fail to take out contents insurance.  Some insurers offer a better deal for combined buildings and contents insurance.

Most insurers won't cover your property if you are away for more than a month, so be aware that not telling them this could invalidate a claim.

Extra security on your property will usually lower your premium.

It's always worth considering life assurance when taking out a mortgage, in the event anything should happen to you.

Chains

A staggering 1 in 3 property chains fall apart.  There is little that can be done if someone decides to pull out due to lack of finances or a survey that reveals problems.

HIPs (home information packs) are now compulsory for all homes which are for sale.  These provide information on a property's background and reduce the risk somewhat.  Read this information thoroughly for any past issues.

The best way to avoid a problematic chain is regular communication with parties involved and a high level of flexibility.  It's best to build up a rapport with the solicitor / mortgage lender / estate agent, and if you're flexible on the date you can move things will be much easier.

A Costly Business?

The following provides a brief overview of the costs involved in buying a house

Deposit

Varies

Mortgage fees

Approx. £500-£1000 (if applicable)

Stamp duty

Up to £175,000 - nil - as of September 2008 the government has increased the lower stamp duty limit for 1 year

£175,001 to £250,000 - 1%

£250,001 to £500,000 - 2%

More than £500,000 - 4%

Surveys

Approx. £300-900

Buildings and Contents Insurance

Varies

Life Assurance

Varies

Solicitor including Local, Environmental & Water search

Approx. £1000-£1500