First-Time Homebuyers Guide: What You Need to Know Right Now

Buying your first home feels exciting and scary at the same time. You probably wonder how much you can actually afford, what credit score you need, and whether there’s any money you can get from the government to help with the down payment. This guide cuts the fluff and gives you straight answers so you can move forward with confidence.

Figure Out Your Budget Before You Look

The first step is to know the price range you can realistically handle. Lenders usually look at your debt‑to‑income (DTI) ratio, which compares monthly debt payments to your gross income. As a rule of thumb, keep your housing costs – mortgage, taxes, insurance – below 30% of your monthly earnings. If you earn £36,000 a year, that works out to about £900 a month for housing. Use an online calculator or ask a mortgage adviser to see how different interest rates (6‑8% in 2025) affect the numbers.

Don’t forget the upfront costs: a 5‑10% deposit, stamp duty, legal fees, and moving expenses. For a £300,000 house, a 10% deposit is £30,000. Some buyers wonder if they can buy with zero deposit. In the UK, zero‑down options are rare and often come with higher rates, so it’s usually smarter to save a solid down payment.

Credit Score Matters – Know the Target

Most lenders want a credit score of at least 620 for a standard mortgage, but the sweet spot for better rates is 720 or higher. If you’re aiming for a £600,000 property, a higher score can save you thousands over the loan’s life. Check your credit report, dispute any errors, and pay down revolving debt to lift that number. If you need a quick boost, consider a secured credit card or a small personal loan (around £30,000) and make timely payments.

Remember, a higher score not only gets you lower interest but also opens the door to special programmes like Help to Buy or shared ownership schemes. In shared ownership, you buy a slice of the property (often 25‑75%) and pay rent on the rest. It can lower the deposit and monthly payment, but keep an eye on service charges and resale rules.

Take Advantage of Down‑Payment Assistance

Many UK regions offer grants or loans to help first‑timers. For example, Virginia and North Carolina have state‑run down‑payment assistance programmes that cover a portion of the deposit if you meet income and purchase‑price limits. Look up local council schemes – some match your savings dollar‑for‑dollar up to a set amount.

When applying, have your proof of income, tax returns, and a solid budget plan ready. The faster you can show you’re a low‑risk borrower, the more likely you’ll qualify.

Pick the Right Estate Agent

Not all agents are created equal. A good agent will be transparent about fees, provide recent comparable sales, and guide you through negotiations. Prepare a checklist: ask about their recent sales in your target area, request references, and watch out for agents who push properties that stretch your budget. Red flags include vague communication, pressure tactics, or unusually low fees that might hide hidden costs.

Having an agent you trust can speed up the process, especially when you need to make a quick offer on a competitive listing.

Avoid Common Pitfalls

First‑time buyers often overlook the total cost of ownership. Beyond the mortgage, budget for council tax, utilities, maintenance, and insurance. If you’re buying a property with a homeowners association, include the monthly service charge in your calculations.

Also, be wary of FHA‑style loans (or their UK equivalents) that require mortgage insurance for the life of the loan. Those premiums can add up, so compare the long‑term cost against a conventional loan with a larger down payment.

By keeping these points top of mind – budgeting, credit, assistance programmes, the right agent, and total‑cost awareness – you’ll be in a strong position to snag the home that fits your life and finances.

Ready to start? Pull out your pay slips, check your credit, and reach out to a trusted mortgage adviser. The sooner you get the numbers, the sooner you can focus on finding a place that feels like home.