So, you think you’re ready to become a homeowner? Congratulations! This is an incredibly exciting milestone, but before your dive straight into the process, it’s important to be equipped with all the right tools and knowledge for the road ahead.

First time home buyers are prone to mistakes, and in regards to big financial decisions, like home ownership, you can never be too prepared. To save you some time we’ve created a list of 5 important tips to consider when beginning your home buying journey. These 5 points are not the only things to think about, but they’re some of the most significant. With the initial steps out of the way you’ll be on the right foot and ready to tackle this new challenge!

1. Be Realistic About What You Can Afford

One of the obvious and most important things to consider when buying your first home is what you can afford. Not only do you need to be realistic property-wise, but exercising a sense of practicality in relation to interest rates is also wise. Using a free interest rate calculator is an excellent way to predict how different interest rates will affect your monthly payments and here are just few you can use: MortgageCalculator, L & C, Lendi etc. It’s also important to consider whether a fixed or variable rate will suit your financial situation better. Interest rates are nothing to be scared of, but it’s essential that you do your research. Making a badly informed decision can lead to overwhelming monthly repayments and can lead to a build-up of debt.

2. Keep Up-to-date on the Market

The property market is constantly changing, and interest loans consistently change to reflect it. The upside of home loans is that there are many different options for you to consider, and home loans can be negotiated to reflect your financial situation. Even before you begin applying for loans or looking for houses, it’s a good idea to keep on top of current market trends and rates. This way, you’ll have a general idea of what to expect in advance, and you can adjust your budget and planning to reflect fluctuations.

3. Don’t Use All Your Savings

As we mentioned earlier, it can be tempting to opt for your dream house from the get-go, yet pouring all your savings into a property that’s too expensive is not smart, and can cause you to run up a major debt. Many first-time buyers get carried away and forget that there are many extra costs associated with purchasing your first home. Moving house, renovating outdated fixtures, and installing new appliances all cost a fair amount of money, not to mention the cost of conveyancing, bank fees, and insurance.

Hot tip: Don’t forget to look into possible grants or schemes that you may be eligible for, even just receiving a discount on stamp duty can make a difference.

4. Check Your Eligibility

A step that many property novices overlook is checking their eligibility for loans. When doing your research, be thorough in exploring whether potential loans fit your needs, and whether you fit their requirements. If you have questions, always call the lender or request extra information, you never want to be blindsided by a lack of research. Requesting home loan pre-approval from your lender is an excellent way to gauge whether your lender is seriously considering your application. It will also take some of the stress out of looking for potential homes, as you will have the added security of pre-approval.

Another thing to remember: banks and mortgage lenders will assess your credit history and conduct in-depth credit checks before approving loans. It’s always a smart idea to request a personal credit report so that you can fix any errors before beginning your applications.

5. Make Sure Your Loans Are Approved, Before Shopping Around

Last but not least, it is essential that you make sure you receive approval before committing to shopping for homes. Casually attending inspections or browsing the market is completely fine, but entering negotiations or seriously enquiring without pre-approval can be create unnecessary complications. Buying your first home is incredibly thrilling, but that excitement can quickly turn to disappointment should your loan not get approved, or if you set your heart on homes well out of your reach.

At the end of the day, buying your first home is a major life event, and it is equal parts exciting and nerve-wracking. Yet with proper research and effort, you can reduce the amount of stress involved. Happy buying!