A First Time Buyer Step by Step Guide

Buying your first home is a big step and it can sometimes feel daunting but knowing what lies ahead can make all the difference. With a clear understanding of the process, you can go into it feeling informed and confident, rather than overwhelmed.  

In this first time buyer guide, we’ll take you through the entire process so you know exactly what to expect. 

 

1. Save for Your Deposit

The first step to buying a home is saving for a deposit. A deposit needs to be at least 5% of the property’s value, although a larger deposit will help you secure better mortgage rates. 

There are several ways you can boost your deposit, such as by using a Lifetime ISA, which offers a 25% government bonus on your savings. You can also use high-interest savings accounts or look into government schemes, such as the First Homes scheme, to help you get onto the property ladder.  

At Davidsons Homes, we offer a number of deposit contribution schemes, including providing a deposit boost worth up to 5% of the value of the home you have in mind, making securing a mortgage that much easier and easing the repayment process. To find out more about our deposit incentives and, to stay up to date with the latest offers as they come through, simply register your interest on the development of your choice or reach out to one of our sales advisors who will be happy to help.  

 

2. Calculate How Much You Can Afford

Before you start searching for a home, it’s important to understand how much you can afford to borrow and repay each month. This will help you confirm your budget and narrow down your home search.  

 

When applying for a mortgage, a lender will consider: 

 

• Your income and employment status 
• Your monthly outgoings 
• Your credit score and credit history 
• The size of your deposit 

 

When calculating how much you can afford, you’ll also need to factor in the additional costs that come with buying a home.  These include: 

 

• Legal and conveyancing fees 

• Survey and valuation costs 

• Mortgage fees 

• Stamp Duty (First Time Buyers pay no Stamp Duty on properties up to £300,000. Home priced between £300,001 and £500,000, 5% s paid on the portion above £300,000.) 
• Moving expenses  

As a first time buyer, having a realistic budget is essential before you begin your search. For help with this step, speak to a mortgage advisor who can guide you on how much you can realistically borrow and repay when buying a house in the UK.  

 

3. Get a Mortgage in Principle

A Mortgage in Principle (also known as Agreement in Principle) is a statement from a lender that confirms how much they might be willing to lend you. Although it’s not a formal offer, it’s a helpful guide to understanding your budget and shows sellers you’re a serious buyer.  

Once you have a Mortgage in Principle, it’s typically valid for around 90 days. Once it expires, you may need to renew it, which may involve another soft credit check.  

 

4. Begin your Home Search

Once you’ve confirmed your budget, it’s time for the fun part – searching for your first home.  

 

It’s worth doing some research before you book any viewings to figure out what you’re looking for in your first home. Consider: 

 

• The location 

• Nearby transport links 

• The local area, including green space  

• Local amenities 

• Schools, if relevant to you  
• Cost to run the new home (don’t forget, new builds are built to the latest building regulations and therefore are more energy efficient to keep your running costs down.)  

Once you’ve narrowed down your requirements, you can begin viewing properties and new build developments.  

 

5. Apply for your First Time Buyer Mortgage

If your offer is accepted, the property will be secured for you while you apply for a mortgage. This process involves applying directly with a bank or building society or through a regulated mortgage advisor. Davidsons has a panel of trusted mortgage advisors who can give you free advice during your purchase journey with us.  

 

These are the things to consider before choosing a mortgage lender:  

 

• Interest rates – fixed vs. variable 

• Fees – for arrangement and valuations 

• Criteria – some may be stricter than others 

• Application turnaround time 

• Service – digital process vs. in-person 

• Repayment flexibility – will they allow you to make overpayments without penalties? 
• Reputation and reviews – how are they rated? 

When submitting your application, you’ll need to provide proof of your income, debts, outgoings, and deposit, as well as proof of your identity and current address. 

If you’re self-employed, you’ll also need to provide your tax returns and business accounts for the last two or three years.  

By speaking to a broker prior, you can get ahead of this and speed up the process.  

 

Once the lender has received your application, they will: 

 

• Carry out affordability checks  

• Review your financial documents  

• Arrange a valuation of the property 

If successful, you’ll receive a formal mortgage offer. 

 

6. Start the Legal Process

The next step is to appoint a solicitor or conveyancer to begin the legal processes involved with buying a home.  

 

Conveyancing

Conveyancing is the legal transfer of property ownership. As part of this process, your conveyancing solicitor will conduct local searches, review and raise enquiries on the property and surroundings, arrange mortgage funds, draft contracts, and register ownership. 

 

Insurance

During this time, you’ll also need to arrange buildings insurance, which is required before the exchange of contracts.  

 

Additional checks

 

Further checks and assessments may also need to be completed: 

 

• A property survey (optional but recommended in some cases). This won’t be required in a new build home. 

• An inspection for new build homes to identify any minor issues before completion. This can be completed post-exchange as per the new build compliance bodies.  

 

7. Exchange of Contracts and Pay your Deposit

Once all legal checks have been completed and both parties are ready, contracts can be exchanged. 

 

At this point:  

 

• You’ll ensure all documents are signed and with your solicitor 

• You’ll pay your deposit  

• You’ll need to arrange payment of your first time buyer Stamp Duty Land Tax to be paid on completion. 

• The sale becomes legally binding  

• A completion date is agreed (which can be on notice or fixed.) 

 

8. Complete

Completion is when the purchase is finalised. This is when the mortgage funds are transferred to the seller, ownership is legally transferred to you and you receive the keys to your new home. 

 

9. Move In!

Once you’ve got the keys, it’s time to settle in and make your new house a home. 

Don’t forget to set up your bills, including water, gas, electricity, broadband, and Council Tax, and register with your local healthcare services. Many of these can be sorted prior to moving in.  

 

Become a First Time Buyer with a New Davidsons Home

As a first time buyer, getting on the property ladder can feel daunting, but, with this guide, you can approach the process with confidence.  

At Davidsons Homes, we pride ourselves on creating high-quality homes in carefully chosen locations. Whether you’re just starting your search or ready to take the next step, our team is here to guide you every step of the way, with every buyer getting their own dedicated sales manager to support them across every stage of the process. 

We have a wide range of homes including ones ready to move into now, and those you can move into later down the line and therefore select your own choices and upgrades. There’s something for every buyer! Explore our latest developments and start the search for your first home today.