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What is an agreement in principle?

This will let you know roughly how much you’ll be able to borrow so that you can start to look for homes within your price range. In order to obtain an agreement in principle you will need:

Exact details of your total income Details of your regular expenditure

Note: The size of your deposit and your credit rating may also impact the amount a lender is willing to loan you.

Top tip

Many mortgage advisors will be able to give you an estimate of the amount you can borrow based on your income and regular outgoings. This is useful to get an idea of what you will be able to borrow, but it does not constitute a full agreement in principle.

As a general rule, most lenders will be willing to lend you between 4 and 5 times your annual salary. However, this does vary between companies and you will need to contact them for their particular rates.

Where can I get one?

You can arrange an agreement in principle with your chosen bank or building society. Many people enlist the help of expert mortgage brokers who are able to compare rates for you across the market to get you the best deal for a fee.

Once you have an agreement in principle there are other costs that come a little further down the line that you have to account for before the hunt for a home can commence:

Valuation fees

There are two types of valuation. The first is a mortgage valuation. This will give you the value of the property you are looking to buy. The second is a survey and valuation (also called a Homebuyers Report). This is a more in-depth review and will give you information on any defects or problems which may well impact the home’s value.

Legal fees

This is the money you will need to pay a solicitor to organise the contracts and other legalities. The cost of this varies between companies so it is well worth getting a few quotes. Additionally, Search fees and Land Registry fees are usually included in these quotes so that is another thing worth checking!

Removal costs

This is simply the cost incurred when moving all of your possessions from your current home into your new one.

Let the hunt begin!

Now this is the fun part of buying a new home!

It is all about discovering what you like and what you don’t like, what is a ‘must have’ and what is a ‘nice to have’.

There are a number of different ways to find homes that are for sale:

Contact housebuilding companies for details of their new homes Use Estate Agents Search property portals on the internet such as RightMove and Zoopla Look at the property pages in the newspaper

Finding the right house for you…

It can be difficult to narrow down the number of homes that are on offer within your budget. Here is a list of questions you can ask yourself so that your dream home begins to take shape:

How many bedrooms do you need?

Do you like open-plan living spaces or separate rooms?

How many cars do you require parking for?

Are you looking for a garden or balcony? If so, what size?

Are you keen to spend time making big renovations or do you want something ready to move into?

How many bathrooms would you like?

Do you need to have wheelchair access?

Do you now have a picture of the perfect home in your head? Great! Now where should you start looking?

Are you keen to live in the city or would you prefer somewhere more rural?

Do you need to be close to a train station or bus stop?

Would you like to be within walking distance of local shops and restaurants?

Do you need to consider catchment areas for local schools?

Top tip

On a piece of paper draw a line down the middle vertically and horizontally so you have four equal sized boxes. In each box make a list of:

The things that you consider essential in the home you want to buy The things that it would be nice to have What is not ideal but you could put up with What would constitute a definite no

Once you have your four lists you should have a nice idea of what it is you are looking for and it’s time to hit the road and begin viewing homes!

Viewing a new home

A show home is a great way to get a flavour for how new homes will look once completed. Many housebuilders will also have computer drawn illustrations to help you visualise these homes and neighbourhoods. There may even be some homes at new developments that are built and ready for you to go in, take a look at, and move into!

On top of that house builders will use interior design experts to decorate their show homes so it is really beneficial to take a look at their creations to take inspiration and help hone your own tastes.

Top tip

Many new housebuilders also offer a range of different incentives on some of their homes to help make buying your first home more affordable. Additionally, they will have relationships with mortgage advisors and solicitors that will help make the process smoother. Plus, all new homes are covered by a 10-year NHBC warranty.

Tips for viewing properties

Obviously, where you are going to put your shoe collection and hang your favourite photos of you and your friends after one too many drinks is very important. However, there are some other things to consider as well:

Storage space

Running costs. Take into account energy efficiency, council tax and other monthly outgoings on top of your mortgage repayments.

Mobile phone and broadband coverage

Natural light

Apartments or Leasehold properties

If you are buying an apartment or leasehold property there are some additional questions you should be asking:

How many years are left on the lease?

How much is the service charge?

Are there any rules regarding the communal areas?

Found the one? What next?

Making a reservation

Before doing this:

Decide on the maximum figure you wish to pay. Remember to use your agreement in principle as a guide on how much you can borrow

Compare the price of the property to others that have sold in the area recently