First-Time Buyer's Journey: 7 Essential Steps to Secure Your Dream Home in 2025

Ricky Gandhi
Sep 4
5 min read

Updated: Sep 5

One of the major turning points in life is purchasing your first home. Although there are a lot of stages to follow, it can often feel daunting. Don't fear, we at 1st Choice Mortgages have successfully walked this path with hundreds of first-time buyers. These seven crucial stages will help you get from having aspirations of becoming a homeowner to actually holding the keys to your new residence.

Step 1: Check Your Credit Score and Get Your Finances Ready

Prior to beginning your home search, you should ascertain your current financial situation. Your credit score serves as a report card for lenders, indicating your proficiency with money management.

What you need to do:

· You may use websites like Experian, Equifax, or ClearScore to check your credit score for free.

· If at all feasible, settle any outstanding bills.

· Verify that your current address is shown on the electoral roll.

· Refrain from obtaining new loans or credit cards.

How much should you save? The majority of lenders want proof that you have saved at least 5–10% of the purchase price. You'll obtain better mortgage offers if you have a larger deposit. Remember to set aside additional funds for relocation expenses, surveys, and solicitor fees, which often range between £3,000 to £5,000.

Step 2: Work Out How Much You Can Borrow

This phase aids in creating a reasonable spending plan for your home search. Generally speaking, lenders will allow you to borrow four to five times your yearly wage, though this will vary depending on your unique situation.

Things that affect how much you can borrow:

· Your earnings (bonuses and side gigs included)

· Your monthly expenditures (such as credit card bills, auto payments, and daily costs)

· The amount of your deposit

· Your credit background

To estimate how much you might be able to borrow, use our mortgage calculator on the 1st Choice Mortgages website. Keep in mind that you should allow space in your budget for unforeseen costs in life, even if you can borrow a specific amount.

Step 3: Get a Mortgage Agreement in Principle

A mortgage agreement in principle, or AIP, is comparable to a lender's conditional approval. It demonstrates to sellers and real estate brokers that you are serious about the property and that you can afford it.

Why you need an AIP:

· You will be given more consideration by real estate agents.

· You'll be fully aware of your spending limit.

· When you find the right house, the purchasing procedure moves more quickly.

· The likelihood of your offer being accepted is higher.

An AIP can be obtained online for free and typically in a matter of minutes. We at 1st Choice Mortgages can assist you in obtaining AIPs from several lenders so that you have the greatest choices. The AIP often lasts between sixty and ninety days, so you don't have to buy right now.

Step 4: Start House Hunting

The exciting phase is about to begin: locating your ideal house! However, be sure a house fits your lifestyle and budget before falling in love with it.

Smart house hunting tips:

· Use Rightmove, Zoopla, or OnTheMarket to begin your internet search.

· List the "must-haves" and "nice-to-haves" separately.

· Give the location careful thought; take into account the amenities, nearby schools, and your commute.

· Examine the neighbourhood at various times of day rather than just the residence.

· Keep in mind that while a house can always be improved, its location cannot be altered.

First-time buyer schemes to consider:

· Help to Purchase Equity Loan: Up to 20% of the property's worth (or 40% in London) may be lent by the government.

· Shared Ownership: You purchase a portion of the property and are responsible for the remaining rent.

· Right to Buy: Council tenants may be eligible for a discount when purchasing a home.

Step 5: Make an Offer and Get Your Full Mortgage Application Started

Have you found the ideal house? Now is the moment to offer. Don't worry too much about this phase because offers in England and Wales aren't legally binding until contracts are exchanged.

Making a competitive offer:

· Examine the prices at which comparable houses have recently sold.

· Examine the property's state and any necessary repairs.

· Be ready to engage in negotiations.

· Be swift in a competitive market.

After your offer is accepted, get in touch with 1st Choice Mortgages right away to begin the entire mortgage application process. We'll assist you in selecting the best mortgage package and lender for your circumstances. We have access to deals that aren't available on the main street, which is where having a smart mortgage broker truly pays off.

Step 6: Get a Property Survey and Handle Legal Work

While your mortgage application is being processed, you must engage a solicitor and set up a survey.

Types of surveys:

· Basic Valuation: This is often set up by your lender to determine whether the property is worth the amount you are paying.

· Homebuyer Survey: A more thorough examination of the property's state (usually advised for most properties)

· Complete Building Survey: Detailed report (suitable for older or unique homes)

Legal work: Your solicitor will handle all the legal paperwork, including:

· Searches for properties to look for problems

· Examining the agreement

· Setting up the ownership transfer

· Overseeing the procedure of exchange and completion

This phase typically lasts six to eight weeks, though this can change according on the chain and any problems that arise.

Step 7: Exchange Contracts and Complete

You're nearly there! When contracts are exchanged, your home purchase becomes enforceable. You will establish a completion date and pay your deposit, which is typically 10% of the purchase price.

What happens at the exchange:

· The sale is legally binding on both you and the seller.

· You give your lawyer your deposit.

· A completion date is decided upon, typically one to two weeks later.

· Anyone who leaves after this could lose a significant amount of money.

When you receive the keys, it's completion day! Ownership will formally move to you, and the seller will get your mortgage funds.

Ready to Start Your Journey?

It doesn't have to be a stressful experience to purchase your first house. Before you know it, you'll be holding the keys to your new house if you follow the proper instructions and prepare. First-time homebuyers like you are our specialty at 1st Choice Mortgages. We'll walk you through every step, locate the greatest mortgage offer, and ensure a seamless transaction. Even if you've been denied elsewhere, our knowledgeable staff can frequently uncover solutions because they have access to a large number of lenders. For a free consultation, get in touch with 1st Choice Mortgages right now. To begin, give us a call at 2080959030 or use our online mortgage calculator. You're closer than you think to your ideal home! 1st Choice Mortgages: Simple & Secure Your Future