Ten things you need to know about... buying your first home ¦ Property Guides on Times Online

- Money:

a) Find out how much you have to spend. Until recently lenders have been happy to advance loans of up to four times a salary but the credit crunch in the financial markets means many are tightening up on their criteria. Borrowers with larger deposits will have a greater choice of loans and stand a better chance of securing a good rate. Aim to have about 10 per cent of the property’s value.

b) Research mortgage deals and familiarise yourself with different types of loans. Money Supermarket is a good place to start but you may also wish to contact a broker such as London & Country Mortgages or Charcol. They can help you decide between a fixed or a variable rate and whether to opt for a repayment or interest-only mortgage.

Ten things you need to know about... buying your first home

Soaring property prices have made it difficult for first-time buyers to get onto the property ladder. But a slower market could provide new opportunities: find out how to make the most of them

• A step-by-step guide to buying your first home

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• Ten things you need to know about... buying your first home

c) Pick a deal and obtain an agreement in principle with the lender. This is not binding but it helps to work out the budget and tells estate agents and sellers that you are serious.

- House Hunt:

a) Once you have decided how much you have to spend, it is time to start looking. Pick a couple of areas and research them as thoroughly as possible. Property portals such as Rightmove, globrix, Propertyfinder, Findaproperty and Primelocation will show you what is available within your price range.

b) Register with as many estate agents and possible. Be precise about your requirements but keep an open mind. Aim to view as many promising properties as you can. You will soon get a feel for the market and the agent will know you are serious.

- Negotiate:

It is perfectly reasonable to make an offer below the asking price. You stand a better chance of success if the seller needs to move quickly. So make sure you ask about their circumstances. Put your case strongly. As a first-time buyer you are not in a chain and can move quickly.

- The paperwork:

The Mortgage. If your offer is accepted, tell your mortgage lender immediately to start the buying process. The lender will need to do a mortgage valuation of the property you want to buy. It is up to you as the buyer, however, to decide whether you need a more thorough survey such as the homebuyer’s survey or even a full structural survey.

The Legals. Now is also the time to instruct a solicitor or a specialist online conveyancing company to deal with the legal work. The Advisory can help you pick the right one for you. The conveyancing company or solicitor is responsible for doing the Local Authority and Land Registry searches.

The Wait

After an initial flurry of activity, there is what feels like a very long wait as the paperwork is carried out.

Property transactions can take months to complete and many sales fall through during this period. Sellers change their minds, buyers pull out, someone further up the property chain has a change of heart.

Exchanging contracts

Once your solicitor has carried out all the searches and the contract terms have been agreed, you are ready to exchange. The contracts are now legally binding. You will now set a completion date (usually two weeks later), pay the deposit and arrange buildings insurance for your new home.

Completion

This is the day you become a homeowner.

- The Costs:

Deposit: aim for 10 per cent of the property’s price

StampDuty:Up to £125K - Nil

£125,001 - £250K - 1%

£250K - £500K - 3%

£500K+ - 4%.

(NB the rate applies to the full price)

Legal Fees:£400 to £600 (including VAT)

Searches: £350

Mortgage Arrangement fee: £500 to £2,000

Mortgage Valuation from £150

Homebuyer’s Survey from £300

Full Structural Survey from £550

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